NZDUSD profit target reached, prepare for a bounce

780
Intro: We have reached our profit target on NZDUSD and now it’s testing major support. We look to buy for a bounce.

Buy above 0.7272. Stop loss at 0.7215. Take profit at 0.7374.
Reason for the trading strategy (technically):
Price has dropped perfectly towards our profit target and we’re seeing major support above 0.7272 (Fibonacci retracement, Fibonacci extension, horizontal overlap support, bullish divergence) where a bounce would push price up towards 0.7374 resistance (Fibonacci retracement, horizontal overlap resistance).
Stochastic (34,5,3) is seeing major support above 7.6% and also sees bullish divergence vs price signalling that a bounce is impending.

Penafian

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