As you can see the support becomes new resistances. We have just broken support and approaching the resistance zone. Once it reaches we can look for an entry signal to short
Nice idea on NZDUSD and there may be bearish potential as you have identified. The 1st resistance that we have identified is at 0.6503, which coincides with the lower limit of your resistance zone. It is a horizontal pullback resistance with 23.6% Fibonacci retracement and 100% Fibonacci extension. Stochastic is approaching its resistance at 97% where a corresponding reversal could occur. If a reversal does occur, we may take a closer look at the 0.6453 support level. It is a horizontal pullback support with a 61.8% Fibonacci retracement. Looking forward to see how things develop.
Please have a look at my idea and share with me what you think.
FXCM
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I agree with your bearish view on NZDUSD. Our trading signal idea is also of the same bias. It reacted off its resistance at 0.6500 (100% Fibonacci extension, 23.6% Fibonacci retracement, horizontal overlap resistance) where it could drop further. Here’s our idea!
Please have a look at my idea and share with me what you think.