FxWirePro: NZD/USD hits 6-year lows again, leading oscillators indicate short term uptrend signals, MA indicates hedging for downtrend

Technical glimpse:

Well..!!! Kiwi dollar hit 6 years lows at 0.6466 levels, while intraday sentiments during US sessions may likely either be sideways or slightly bullish to hold this level. The pair at this psychological juncture in the mood to break the supports at 0.6466 levels as RSI on monthly chart shows downward convergence with dipping prices as it has headed towards 30 levels.

More importantly, the hanging man has occurred at 0.6619 on short term rally that was spotted out in our earlier call as well. This is showing its significance. Hanging man at 0.6619 signifies a weakness in the pair again. The pair is now able to hold 6 years lows of NZD/USD for sometime as the other leading oscillators are diverging with dropping prices on intraday charts as well.

To substantiate this view on weekly charts slow stochastic curves were attempting to remain in sync with standpoint offered by RSI. Currently, RSI (14) is trending at 44.8333, while %K line crossover on intraday charts below 20 signifies slight price recoveries.

More importantly, our lagging indicator (Moving Average) signifies long term trend sentiments, as moving average was also suggesting the prevailing daily prices are attempting to follow downtrend that has created even during today's intraday rallies. The prevailing prices are running below moving average curve, hence it is a bearish trend to resume back again.

Trade recommendation: We look ahead for some minor rallies as the long term downtrend to resume back again. The trade idea would be good to buy ATM binary puts for targets of 15-20 pips.