NZDUSD ST Channel Break and RSI Signal

The NZDUSD has broken below a short term channel. This is a good sign for breakout traders but a break of .6150 is required in order to break the month long range. A sign that additional weakness lies just ahead is RSI (240 minute chart). The indicator has dipped into oversold territory but the intial move into extreme territory usually marks the beginning or middle of a trend rather than the end (take a look at the initial overbought reading on 5/5. While a pullback is possible, evidence is increasingly bearish.