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Reiteration of NZD/USD shorts as bears break channel support

FX:NZDUSD   New Zealand Dollar/U.S. Dollar
87 0 9
We advised shorts upon breach of channel support on 6th of this month, it has also managed to break below rising channel support earlier last week.

Since then, bears have shown their effects after breaching below, price drops almost 65 pips so far.

Yesterday, although the pair has bounced back again, could sustain minor resistance at 0.6843 levels, bears are active today again.

The current prices have now slid below DMAs, with 7DMA crosses over 21DMA.

We’ve been consistently observing “bearish pattern” candles with big real body within rising channel and even after breach below, as a result, current prices have slid below DMAs.

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).

This bearish pattern on weekly occurring at stiff resistance of 0.6896 levels to signify some sort of weakness at this juncture.

After dropping from major this resistance at 0.6896 levels indicates previous consolidation trend seems again little weaker and more potential for downside to targets.

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.

RSI and Stochastic oscillators on both daily and weekly graphs are suggestive of further declines as they evidence downward convergence to the price dips on daily divergence on weekly shows previous consolidation pattern seems exhausted at this level.

While, %D crossover at 80s which is overbought zone on weekly plotting have been convincing that the selling momentum is still strong.

Trading Tips:

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 80-90% to the binary option investor.
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