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Don’t jump the guns with NZD/USD's short term recovery

FX:NZDUSD   New Zealand Dollar/U.S. Dollar
228 0 2
The pair has currently tested support at 0.6469 today showing a little strength by forming bullish candle with long real body but struggling at resistance level at 0.6541. We could foresee the next bounces only after crossing 0.6541 decisively.

This pair has struggled at that level quite a lot times in the recent past and failed to sustain (see circled areas). Suppose if it breaks these levels, we require confirmation if it sustains for next 2-3 days reasonably even after breaking above.

RSI on daily chart is converging upwards at 45.2765, while %K line crossover on slow stochastic curve is seen even below 20 levels which is oversold zone. Currently, %K line trending at 29.5027 and %D line at 15.1631 while articulating). So considering these buying indications, we reckon only short term upswings which could be utilized for exiting long positions those who are stuck with trade paralyze.

Kiwi dollar after long lasting losing streak that has begun from mid April, now the attempt of recovery does not seem persist.

On weekly charts, from last April the pair has been tumbling non-stop from the peaks at 0.7736 levels to evidence the huge loses.

Overall, as per our strong conviction Kiwi dollar's a long lasted losing streak that was started from last 1 year or so to hit almost 6 year's lows is now most likely retest.

So far the major trend has been downtrend dominated by the bears and it is heading southwards for 0.6469 1st and may even expose to 0.6425 levels back again.

Trading tips: As we look ahead for further dips as the long term downtrend to resume back again. The trade idea would be good to buy ATM binary puts on rallies for targets of 40-50 pips.

Alternatively, one can even initiate fresh shorts in put options at current levels using this as right entry point considering minor upswings about 25 to 35 pips upwards.
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