On daily chart below shows that declines in the currency pair EURNZD led to the descent at 1.5110 and recently these price levels seen at the end of May last year.
For supporters of breakout trading could be a signal to buy PUT options. Substantial support is located at 1.4955 and in May last year, twice prevented further declines. Therefore, it may now be the next target for our transaction.
On the other hand, traders who fear a false break may wait to retest the broken support as new resistance and then look for opportunities to short trade.
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