FX.co ★ NZDUSD facing bearish pressure, potential for reversal

Prices are approaching 1st resistance, in line with horizontal overlap resistance, 61.8% Fibonacci extension level. Prices might reverse off to 1st support, in line with the horizontal swing low support, 161.8% Fibonacci retracement and 161.8% Fibonacci extension levels. If prices surpass the descending trendline resistance, it may face resistance from horizontal swing high resistance, in line with the 161.8% Fibonacci retracement and 100% Fibonacci extension . Stochastic indicator is approaching resistance of 91.17, further supporting our bearish view.

Trading Recommendation

Entry: 0.70289

Reason for Entry:

Horizontal overlap resistance and 61.8% Fibonacci extension

Take Profit: 0.69650

Reason for Take Profit:

Horizontal swing low support, 161.8% Fibonacci retracement & 161.8% Fibonacci extension

Stop Loss: 0.70609

Reason for Stop Loss:

Horizontal swing high resistance, in line with the 161.8% Fibonacci retracement and 100% Fibonacci extension