NZDCHF Oversold Bounce| Structural Resistance| Bearish Retest

3 thg 6, 2020

Evening,

Today’s analysis, NZDCHF respecting the 2.618 Fibonacci Extension with the next projected trade location at structural resistance

Points to consider,
- Oversold bounce recovery
- Structural resistance retest
- 21 MA breached
- RSI swing low failure

NZDCHF’s oversold bounce recovery is projecting structural resistance to be tested.

A bearish retest is likely at this level where a short trade is plausible.

The 21 MA has been breached; a back test is probable if price is rejected from structural resistance.

The RSI has a valid swing low failure; this solidifies the strength of the bounce back into structural resistance.

Overall, in my opinion, NZDCHF is on track for a bearish retest. A short trade at this level is valid with defined risk above recent swing high.

What are your thoughts?

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And remember,

“Dangers of watching every tick are twofold: overtrading and increased chances of prematurely liquidating good positions” – Jack Schwager