NZDUSD Daily double top

Randy BalcomTrades

NZDUSD Daily Short Trade

Here is the rational for this trade:

On the daily, we have a clean double top where price has closed in the sweet spot of the second leg. The sweet spot is a retracement between 62% and 125%. (See rectangle)

We are also under the value zone as represented by the red and green moving averages. (8 and 21)

Price looks to be finding support here, with a bullish engulfing bar, so I would wait for a close below .72 before going short. Target is .702 and stop is above .741

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