NZDUSD back to resistance, possible strong reversal lining up!
NZDUSD is back to testing our major resistance level at 0.7239 (61.8% Fibonacci extension, 61.8% Fibonacci retracement, horizontal swing high resistance, bearish divergence, bearish price action) and a strong reaction could occur at this level to push price down to at least 0.7031 support (50% Fibonacci retracement, horizontal pullback support.
It is worth noting that AUDUSD which is positively correlated with NZDUSD is also similarly below major resistance.
Stochastic (55,5,3) is seeing major resistance at 98% and has seen a recent bearish exit along with divergence signaling that an impending drop could be happening soon.
Trading CFDs on margin carries high risk.
Losses can exceed the initial investment so please ensure you fully understand the risks.
It is worth noting that AUDUSD which is positively correlated with NZDUSD is also similarly below major resistance.
Stochastic (55,5,3) is seeing major resistance at 98% and has seen a recent bearish exit along with divergence signaling that an impending drop could be happening soon.
Trading CFDs on margin carries high risk.
Losses can exceed the initial investment so please ensure you fully understand the risks.
This analysis is provided as general market commentary and does not constitute investment advice. Past performance is not indicative of future results