NZD/USD prepare to sell with break of major support

The price has broken a major ascending support-turned-resistance line and we expect a strong drop from here. We prepare to sell below strong resistance at 0.7491 (Fibonacci retracement, horizontal overlap resistance, pullback resistance) for a push down all the way to 0.7405 support (Fibonacci retracement, Fibonacci extension, horizontal swing low support).

RSI (34) is starting to see our support-turned-resistance line broken which would trigger a corresponding drop in price.

Correlation analysis: We are expecting commodities weakness with AUD/USD and NZD/USD both expecting drops.

Sell below 0.7491. Stop loss is at 0.7531. Take profit is at 0.7405.


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