NZDUSD testing major resistance, prepare for a drop
Sell below 0.7344. Stop loss at 0.7356. Take profit at 0.7301.
Reason for the trading strategy (technically):
Price is wow testing major resistance at 0.7344 (Fibonacci extension, horizontal swing high resistance) and we expect a drop from here towards at least 0.7301 support (Fibonacci retracement, horizontal pullback support).
Stochastic (34,5,3) is seeing major resistance at 95% and we expect a strong reaction below that level.
Correlation analysis: AUDUSD and NZDUSD are both strongly positively correlated as seen in the histogram. Both are expecting drops for today too and it is always better when they are moving in tandem.
Reason for the trading strategy (technically):
Price is wow testing major resistance at 0.7344 (Fibonacci extension, horizontal swing high resistance) and we expect a drop from here towards at least 0.7301 support (Fibonacci retracement, horizontal pullback support).
Stochastic (34,5,3) is seeing major resistance at 95% and we expect a strong reaction below that level.
Correlation analysis: AUDUSD and NZDUSD are both strongly positively correlated as seen in the histogram. Both are expecting drops for today too and it is always better when they are moving in tandem.