Despite appearances on short term trading perspectives, on weekly charts, the NZDUSD’s momentum has been intensified after drops below DMAs, likely to extend slumps as it breaches below major supports (0.7228 and 0.7150 levels) of amid any abrupt upswings.
The pair has formed patterns at peaks of 16-months highs which is in nature (at 0.7318 levels on the weekly chart and 0.7282 levels on monthly terms).
As a result of the formation of this , the current prices have slid below 21-DMAs on weekly charts and attempting to slip below EMAs on monthly plotting.
Ever since the pair has rejected 16-months highs at 0.7485 and kept tumbling, attempts to slide below 7EMA (see monthly charts), Kiwi dollar seemed like exhausted at this juncture from the last couple of weeks but for now “Shooting Star” pattern occurred to signify weakness.
and oscillators on both weekly and monthly graphs are suggestive of further declines as they evidence downward convergence to the price dips, so previous consolidation pattern now seems to have exhausted at this level ahead of the central banks' changes in both NZ and the US continents.
While %D crossover at 80s which is overbought zone on monthly plotting have been convincing that the selling momentum is still strong. is also substantiating the same as the downtrend likely to prolong.
Hence, considering above technical reasoning, one can eye on boundary binary options for intraday speculation and shorts in mid-month for the targets towards 0.6950 levels with the strict stop loss at 0.7182.
On speculative grounds, the boundary binary options strategy with upper strikes at 0.7122; lower strikes around 30 pips below 0.7080 levels.
For this speculative position, the leveraged returns are certain as long as the forward prices to remain between both strikes (i.e. 0.7122 > Fwd price > 0.7080).