FxWirePro: Leading oscillators tend to signal trend reversal as NZD/USD holds strong 6-year lows

Kiwi dollar after continues losing streak that has begun from mid April now it is making an attempt of recovery a bit. 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. The pair currently held strong supports at 0.6200 levels from one and half months. You can observe on the monthly charts for the historical evidence as to how the pair has behaved when RSI and stochastic curves have reached oversold zone.

An inverted hammer candle is occurred on weekly charts at the downswings and the trend on this chart started showing slight recovery as the RSI (14) has reached oversold zone but was uptrend could not sustain. But when we plotted monthly charts while formulating long term hedging framework, we believe trend reversal is quite probable in near future.

RSI on monthly chart has approached oversold territory and tend to show upward convergence at 30.2173, while %K line crossover on slow stochastic curve is seen below 20 levels which is oversold zone again. (Currently, %K line trending at 7.9035 and %D line at 5.7026). Overall, Kiwi dollar after a long lasted losing streak that was started from last 1 year or so to hit almost 6 year's lows, but for now it has all chances of change in its direction. So far the major trend was downtrend dominated by the bears and now has been trend reversal.