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FX.co ★ NZD/USD testing our selling area, remain bearish

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Forex Analysis:::2017-03-23T17:19:10

NZD/USD testing our selling area, remain bearish

The price continues to test our selling area as expected and is seeing a nice bearish reaction below the 0.7065 resistance (Fibonacci retracement, Fibonacci extension) where we expect a drop to at least the 0.6968 support (Fibonacci retracement, recent swing low support). We can see that the price has made a bearish exit in a similar fashion to Stochastic, which gives us stronger conviction of a drop from here.

Stochastic (21,5,3) sees major resistance at 95% and has bearish divergence; while the price signals that a strong drop is impending as it has made a bearish exit.

Sell below 0.7065. Stop loss at 0.7113. Take profit at 0.6968.

NZD/USD testing our selling area, remain bearish

Analyst InstaForex
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