The price is hovering below major resistance at 0.7969 (Fibonacci extension, horizontal swing high resistance) and we expect to see a drop from this level towards 0.7841 support (Fibonacci retracement, Fibonacci extension, horizontal pullback support). The trigger for this trade would be when price breaks our ascending support line. Our stop loss is kept at 0.8005 (right above big figure).
RSI (55) is seeing bearish momentum within its bearish descending line.
Correlation analysis: AUD/USD and NZD/USD are both positively correlated. So, it is good to see a drop on NZD/USD and AUD/USD as that increases our conviction on this trade.
Sell below 0.7969. Stop loss is at 0.8005. Take profit is at 0.7841.
