NZD/USD has bounced further up, forming a nice reversal below the strong resistance at 0.6940 (Fibonacci retracement, Fibonacci extension, Elliott wave theory) and we expect a drop below this level towards the support at 0.6889 (Fibonacci retracement, horizontal overlap support).
Stochastic (34,5,3) is seeing major resistance below the 95% level from which we expect a further drop.
Correlation analysis: NZDUSD and AUDUSD are positively correlated which means that they usually move together in the same direction. We expect a drop in NZDUSD and a rise in AUDUSD which means that one should better be caution on this trade.
Sell below 0.6940. Set stop loss at 0.6971 and take profit at 0.6889.
The material has been provided by InstaForex Company – www.instaforex.com Source: Instaforex.com
NZD/USD has bounced further up, forming a nice reversal below the strong resistance at 0.6940 (Fibonacci retracement, Fibonacci extension, Elliott wave theory) and we expect a drop below this level towards the support at 0.6889 (Fibonacci retracement, horizontal overlap support).
Stochastic (34,5,3) is seeing major resistance below the 95% level from which we expect a further drop.
Correlation analysis: NZDUSD and AUDUSD are positively correlated which means that they usually move together in the same direction. We expect a drop in NZDUSD and a rise in AUDUSD which means that one should better be caution on this trade.
Sell below 0.6940. Set stop loss at 0.6971 and take profit at 0.6889.
The material has been provided by InstaForex Company – www.instaforex.com
Source: Instaforex.com
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