The Daily trend is Downtrend technically indicated by following:
• Dow pattern- lower tops and lower bottoms (B1-T1-B2-T2-T3-B3).
• Price is currently trading below the valid downtrend line.
• Price is currently trading across the downward channel.
The downtrend is confirmed by the bearish cross of MA10 below MA20.
Price is trading below the resistance level at 0.6770(R1).
The Descending Channel is a price action contained between two downward sloping parallel lines. Price channels show trend direction (bearish):
• Descending Upper Trend-line, the main trend-line which acts as a resistance in descending Channel pattern. .
• Descending Lower Trend-line, the secondary trend-line which acts as a support for the pattern.
As long as the price is trading across the downtrend channel short positions are recommend.
Therefore, I will recommend SHORT POSITIONS for the no position holders on NZD/USD. Take profit-1 at 0.6525 (S2), take profit-2 at 0.6470 (S3). Stop loss should be a bit above the resistance level-R1, thus the stop loss is at 0.6795.
For LONG-positions I will recommend to WAIT for buy signal: Buy when prices closes above the upper trend-line. This is like buying a breakout above the resistance.
• Dow pattern- lower tops and lower bottoms (B1-T1-B2-T2-T3-B3).
• Price is currently trading below the valid downtrend line.
• Price is currently trading across the downward channel.
The downtrend is confirmed by the bearish cross of MA10 below MA20.
Price is trading below the resistance level at 0.6770(R1).
The Descending Channel is a price action contained between two downward sloping parallel lines. Price channels show trend direction (bearish):
• Descending Upper Trend-line, the main trend-line which acts as a resistance in descending Channel pattern. .
• Descending Lower Trend-line, the secondary trend-line which acts as a support for the pattern.
As long as the price is trading across the downtrend channel short positions are recommend.
Therefore, I will recommend SHORT POSITIONS for the no position holders on NZD/USD. Take profit-1 at 0.6525 (S2), take profit-2 at 0.6470 (S3). Stop loss should be a bit above the resistance level-R1, thus the stop loss is at 0.6795.
For LONG-positions I will recommend to WAIT for buy signal: Buy when prices closes above the upper trend-line. This is like buying a breakout above the resistance.