NZD/USD an opportunity for short positions

Forex Technical Analysis NZD / USD | Our expectations:

A short-term downtrend and a correction to 32.8 Fibonacci and horizontal resistance create an opportunity for short positions with a SL at 0.7100.

The last four bars have large upper shadows – a fatigue signal for the corrective movement.

DeM (14) rotates from an overbought market above 0.7 downward – a negative signal

DeM Sequential has counted to 9 – gives reason to expect a reversal of the latest corrective upward movement.

SMA50 and SMA200 in bearish formation after deadly crossing, which is not yet played and the correction gives a good expectation that this will happen.

We can wait for an adjustment of 10 to 20 pips to minimize risk and lower stop.

Alternative Scenario: Breaking the price over SMA50 and holding on top (at least one bar closed above the moving average) will spoil the negative scenario.

 Trader Nikolay Georgiev

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