NZD/USD has been trapped within two horizontal levels on the daily chart. The pair had a rejection at the level of resistance and produced two consecutive bearish candles. The first candle came out as a bearish inside bar. However, the H4 chart shows that the price has been in consolidation after making a good bearish move. If the consolidation resistance produces a bearish reversal candle, the sellers may go short below the level of support.
Chart 1 NZD/USD H4 Chart
The chart shows that the price had a rejection at around 0.61500 and made a bearish move. The price had a bounce at 0.60820. Since then it has been in consolidation. The level of 0.60820 has been working as a level of resistance. If the level produces a bearish reversal candle, the sellers may go short below 0.60820. The chart shows that the price has enough space to travel towards the South. Thus, the next move may end up being a strong bearish move.
Trade Summary
Entry: Sell below 0.60820
Stop Loss: Above 0.60820
Take Profit 1: 0.60500
Take Profit 2: 0.60000
Take Profit 3: 0.59500