NZD/USD: 07.02.2017 D1 chart.
Long term downtrend, correction to 50% Fibonacci.
Third lower top below zone of horizontal resistance - strong signal for a probable downward movement.
Price below diagonal resistance - negative signal.
Price action: bearish engulfing at the end of a clear uptrend on H4 chart and probable pin bar on D1 - probable downward impulse.
Indicators:
DeM(14) in strong overbought zone above 0,7 - reversal will confirm a sell
CCI(50) above 100 as crossing below can be used as confirming sell signal
SL 0,7410
Alternative scenario: Break above the upper shadow of the current bar will lead to test of the 50% Fibo level.
Trader Nikolay Georgiev
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