NZDCHF - Short - Retest of trend line as resistance
The previous breakout through the trend line is being retested. With several confluent areas of resistance above, this looks like a very good short opportunity.
1. Candles rejecting 21 daily EMA
2. 50% fib retrace of previous down move
3. 0.7085 has previously held as Horizontal support is now holding as resistance
Quite a wide SL at 0.7106 because there is a very small chance that price could rotate higher to the top of the channel before selling off, as stoch looks oversold, but I really think that's doubtful with so many areas of resistance in the way. In fact a push higher could be a good opportunity to add to the position.
1. Candles rejecting 21 daily EMA
2. 50% fib retrace of previous down move
3. 0.7085 has previously held as Horizontal support is now holding as resistance
Quite a wide SL at 0.7106 because there is a very small chance that price could rotate higher to the top of the channel before selling off, as stoch looks oversold, but I really think that's doubtful with so many areas of resistance in the way. In fact a push higher could be a good opportunity to add to the position.
Trade closed: stop reached:
I should have taken the oversold stoch as a warning. Got stopped. Bugger.