NZDUSD 0.02% bears resume again in minor and intermediate trend after the occurrence of shooting star at 0.7389, 0.7370 and 0.7331 levels (refer daily plotting).
These bearish patterns have witnessed steep price dips, the current price slide well below DMAs.
For now, we expect more slumps on bearish DMA & MACD crossovers, while both leading oscillators substantiate bearish stance.
Next stiff resistance levels are observed at 0.7251 and 0.7337 marks.
Both leading oscillators ( RSI and stochastic curves) have been converging to the prevailing price dips to indicate strength and momentum in the downtrend.
While MACD’s bearish crossover also substantiates the extension of downswings.
On the intermediate trend, we had warned stating that don’t jump the guns to conclude as the long-term bull trend as the attempts of bull swings were restrained quite frequently below the stiff resistances of 0.7499 levels when the occurrence of bullish engulfing pattern candles that have countered price slumps from last two months.
Shooting stars evidence steep slumps below 21EMAs again, if at all bears manage to drag the price slumps further as both leading oscillators ( RSI & stochastic curves) on weekly terms signal selling pressures, then there would be a potential double top formation.
Hence, we recommend tunnel spread which is binary option version of the debit put spreads on trading grounds. Use upper strikes at 0.7240 and lower strikes at 0.7160 levels.
Alternatively for risk-averse traders, at spot reference: 0.7184, stay short in futures contracts of mid-month tenors with a view to arresting further potential dips.
Currency Strength Index: FxWirePro's hourly NZD spot index is inching towards -95 levels ( bearish ), while hourly USD spot index was at shy above 38 (mildly bullish ) while articulating at 06:52 GMT .
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