FxWirePro: NZD/USD breaks trendline support, leading oscillators signal weakness to prevail

The pair has broken trendline support at 0.6619 yesterday showing further weakness. We could foresee the next strong levels of support only at 0.6541.

This has struggled and failed to hold onto 0.6619 levels which has acted as crucial support and resistance in the recent past as well (see circled areas).

One can initiate fresh shorts at current levels keeping 0.6619 as strict stop loss for the target of 55 to 60 pips.  

Shooting star candle pattern is occurred at 0.6737 levels on daily charts at peaks which has evidenced the pair to slip below 10DMA and the trend on this chart has started showing short term downtrend continuation as the RSI (14) has shown downward convergence with every price dips.

RSI on daily chart is converging downwards at 45.4693, while %D line crossover on slow stochastic curve is seen even below 20 levels which is oversold zone.

Currently, %K line trending at 6.1707 and %D line at 8.7312 while articulating).

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, 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 was downtrend dominated by the bears and it is heading southwards for 0.6541 1st and may even expose to 0.6480 levels.

Trading tips: 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 55-60 pips.