NZDUSD: Looking for Short Entry Setup
Strategy: Pending Short
NZDUSD put in a Bearish Engulfing candlestick pattern below resistance at 0.7820, the 38% Fibonacci retracement, a reversal lower may be ahead. Negative RSI divergence reinforces the case for a downward scenario. Risk/reward considerations argue against entering short here however with prices so close to support at 0.7690, the 50% Fib, and we remain on the sidelines for now.
--- Written by Ilya Spivak, Currency Strategist for Dailyfx.com
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