NZDUSD - Bearish rejection at highly confluent level
The daily candle hasn't yet closed, but looks like a strong bearish rejection of resistance and bearish engulfing signal. NZDUSD has been in a strong bullish trend since December 2016 and the previous BE signal on 26-Jan failed, so we really want some strong confirmation that bears are in control now.
The top of the candle is just about piercing the upper bollinger band, as well as rejecting both trendline resistance AND the fib 76.4 level.
Stoch has been hovering in oversold but has just about crossed below 80. It would be good to see a 1hr or 4hr close below the recent upward trendline (blue) before shorting. A close below the red downwards trendline at 0.7282 would be good too, although waiting for that may make it difficult to get a good R:R.
I think we might see a small bounce higher from 0.7282 offering a second opportunity to enter.
The top of the candle is just about piercing the upper bollinger band, as well as rejecting both trendline resistance AND the fib 76.4 level.
Stoch has been hovering in oversold but has just about crossed below 80. It would be good to see a 1hr or 4hr close below the recent upward trendline (blue) before shorting. A close below the red downwards trendline at 0.7282 would be good too, although waiting for that may make it difficult to get a good R:R.
I think we might see a small bounce higher from 0.7282 offering a second opportunity to enter.
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