Lately I had some good trades on Nzd/usd pair, I was trading mainly on 1-hour chart. In that case 38.2% Fibonacci retracement was a strong resistance and price started to move down. After breakdown below 0% line there were two stops – at 138.2% Fibonacci extension and at 161.8% extension:
1 hour nzdusd chart
In the current moment the direction of trend on that chart is pretty clear. There is also an interesting situation when we check the higher time frame. Let’s see what is going on daily chart. There is a breakdown below 55 moving average which is very important in that case.
Daily nzdusd chart
Also we can easily see that Fibonacci retracement lines can be applied here as well. 61.8% retracement was a strong resistance and since then this pair is moving down. One of extension levels should be a support, at least temporary:
Daily nzdusd chart with retracement lines
Of course I am not sure it this is a trend direction change. It there will be no major change in sentiment, I will keep hunting for short opportunities on lower time frames.
