NZDUSD profit target reached, prepare to sell
Sell below 0.6883. Stop loss at 0.6920. Take profit at 0.6826.
Reason for the trading strategy (technically):
Price has bounced up and reached our profit target perfectly. We prepare to sell below 0.6883 resistance (Fibonacci retracement, Fibonacci extension, horizontal pullback resistance) for a push down to 0.6826 support (Fibonacci extension, horizontal swing low support).
Stochastic (34,5,3) is seeing resistance at 94% which RSI is fast approaching.
RSI (34) has made a bearish exit and is approaching resistance once again where we expect a drop from.
Correlation analysis: NZDUSD and AUDUSD are positively correlated meaning they usually move together in the same direction. We are expecting a rise on AUDUSD and a drop on NZDUSD so it is best to exercise caution on these trades.
Reason for the trading strategy (technically):
Price has bounced up and reached our profit target perfectly. We prepare to sell below 0.6883 resistance (Fibonacci retracement, Fibonacci extension, horizontal pullback resistance) for a push down to 0.6826 support (Fibonacci extension, horizontal swing low support).
Stochastic (34,5,3) is seeing resistance at 94% which RSI is fast approaching.
RSI (34) has made a bearish exit and is approaching resistance once again where we expect a drop from.
Correlation analysis: NZDUSD and AUDUSD are positively correlated meaning they usually move together in the same direction. We are expecting a rise on AUDUSD and a drop on NZDUSD so it is best to exercise caution on these trades.