Consequently, bulls are attempting to make upside traction in both the minor trend and major consolidation phase.
On the contrary, failure swings were also observed at the stiff resistance of 7-EMA levels as pops-up at 1.0631 levels.
For now, more rallies seem to be on cards as both technical indicators are indicating the intensified buying momentum.
The major consolidation phase that has lasted for more than 4 and a half years is now stuck in the range.
Although we spot out dragonfly pattern candles but no confirmation from technical indicators but gaining strength from at 40 levels. Overall, some sort of consolidation just above 1.0450 is foreseen.
Trade tips: Double-touch call options: Contemplating prevailing sentiments in the near-term, if the prevailing sentiments sustain, then, bulls are most likely to extend further up to 1.0645 levels. Thus, at spot reference: 1.0635 levels, double-touch call option strategy is advocated on an intraday trading basis, using upper strikes at 1.0645 levels.
The trading strategy likely to fetch leveraged yields that would be exponential than spot trades when the forward FX prices keep spiking higher up to upper strikes on the expiration.
Short hedge: Alternatively, on hedging grounds ahead of RBA and RBNZ’s monetary policies this week, long-term investors are advised to stay short in contracts of mid-month tenors. The writers of the contract are expected to maintain margins in order to open and maintain a short position.
Currency Strength Index: FxWirePro's hourly AUD spot index is inching towards -133 levels (which is highly ), while hourly NZD spot index was at -140 (highly ) while articulating (at 04:58 GMT ).