NZDUSD testing resistance, potential for a reversal!

10 Apr 2018

NZDUSD is testing its resistance at 0.7322 (100% Fibonacci extension, 61.8% Fibonacci extension, 61.8% Fibonacci retracement) where a potential reversal might happen, causing price to push down to its support at 0.7272 (61.8% Fibonacci extension, 38.2% Fibonacci extension, 38.2% Fibonacci extension, horizontal overlap support). If it breaks past this support, it could fall to its next at 0.7247 (100% Fibonacci extension, 61.8% Fibonacci extension, 61.8% Fibonacci retracement x2, 50% Fibonacci retracement, horizontal overlap support).

Stochastic (55, 5, 3) reversed nicely off its support at 97%. We have also identified a bearish divergence with price which contributes to our bearish bias.