NZDUSD prepare to sell on break of key support
Sell below 0.7051. Stop loss at 0.7093. Take profit at 0.7051.
Reason for the trading strategy (technically):
We prepare to sell when price breaks a major support level at 0.7051 (Fibonacci retracement, Elliott wave theory, horizontal pullback support, bearish divergence) and expect price to make a strong push down to 0.6987 support (Fibonacci retracement, horizontal overlap support).
RSI (34) has made a bearish exit as a pre-signal that we’re seeing a strong drop soon, and the bearish divergence vs price adds to our conviction of seeing an impending drop.
Reason for the trading strategy (technically):
We prepare to sell when price breaks a major support level at 0.7051 (Fibonacci retracement, Elliott wave theory, horizontal pullback support, bearish divergence) and expect price to make a strong push down to 0.6987 support (Fibonacci retracement, horizontal overlap support).
RSI (34) has made a bearish exit as a pre-signal that we’re seeing a strong drop soon, and the bearish divergence vs price adds to our conviction of seeing an impending drop.