GUYS BE AWARE FROM HUNTING YOUR STOP LOSSES BY YOUR BROKER & BY "GHOSTS"
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NZD/USD risk reversal: Sellers have regained control
The post-RBNZ spike in the NZD/USD to 0.7368 was short lived. This is not surprising, if we take into account the sharp drop in the one-month 25-delta risk reversal. As seen on the chart above, the NZD/USD pair breached the rising trend line support on Monday. Interestingly, the 25-delta risk reversal topped out at -0.7 on Monday and fell to -1.013 yesterday. The drop in the risk reversal indicates an increased demand for put options. It is quite clear that sellers have regained control of the pair and the spot looks set to test support at 0.7202 [July 11 low].