Both patterns appeared to break below resistances at 0.6843 and 0.6750 levels respectively and tells a lot about weakness in this pair considering Fed's hiking expectations.
Since then, bears have shown their effects after breaching below, price drops almost 128 pips so far.
Yesterday, although the pair has bounced back again, could sustain resistance at 0.6843 levels, bears are active today again.
The current prices have now slid below DMAs.
We’ve been consistently observing “bearish pattern” candles even after breach below with the signals from leading oscillators for momentum.
On the contrary, ever since the pair has bounced back from the lows of 0.6347 levels, Kiwi dollar seemed like consolidating stronger from last couple of weeks but for now “Shooting Star” pattern occurred at 0.6851 levels (see weekly charts).
and oscillators on both daily and weekly graphs are suggestive of further declines as they evidence downward convergence to the price dips on daily that shows previous consolidation pattern seems exhausted at this level.
While, %D crossover right from 80s which is overbought zone on weekly plotting have been convincing that the selling momentum is still strong.
On weekly basis, Every time price was unable to hold onto resistance at 0.6896 levels it has dropped below to evidences dips upto 0.6425 levels, current price actions has dropped at the same levels.
Taking above technical reasoning into consideration, it is good to buy at every dip and bring in leveraging effect using 'One touch binary puts' with OTM strikes for a minimum targets of 30-40 pips.
The payoffs of touch option has been conditional, if NZDUSD in this case would touch the OTM strike price within any time period by the time of expiration, if the investor predicts correctly and the asset touches the strike price the option expires "in the money".
This is likely to generate an exponentially high return of between 70-75% to the binary option investor.