• 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 .
The downtrend is confirmed by the cross of MA10 below MA20.
Price is trading below the at 0.6770(R1).
The is a price action contained between two downward sloping parallel lines. Price channels show trend direction ( ):
• Descending Upper Trend-line, the main trend-line which acts as a resistance in 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 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.