The minor trend of EURNZD has been quite jittery, the pair has formed a triple top pattern with top 1 at 1.7260, top 2 at 1.7307 and top 3 is at 1.7278 levels (refer ).
Where candle has occurred in the recent past at 1.7133 level that hinders momentary upswings, consequently, the current price below 7DMA is reasonable.
While both technical indicators (momentum and trend oscillators) are in tandem with the minor downtrend. and curves have shown downward convergence to the price dips which is an indication of strength and intensified . To substantiate this stance, has shown crossover entering the territory that indicates downswings to prolong in near-term.
Contrary to that, on a broader perspective, the major trend of this pair has developed a pattern.
The pair has taken support at the midway of 1.6311 levels (refer monthly plotting), as a result, the current major trend spikes above EMAs again with and crossovers, both momentum oscillators have been extremely bias on this timeframe.
Trade tips: On daily trading grounds, at spot reference: 1.7135 levels, we advocate constructing tunnel spread, using upper strikes at 1.7150 and lower strikes at 1.7115 levels. The strategy is likely to fetch leveraged yields as long as the underlying price keeps dipping but remains above lower strikes on the expiration.
Alternatively, as we could foresee downside risks in the near terms ahead of RBNZ’s , on hedging grounds, we advocate initiating shorts in EURNZD contracts of near month expiries and longs in mid-month tenors with a view to arresting further upside risks.
Currency Strength Index: FxWirePro's hourly EUR spot index is inching towards 101 levels (which is highly ), NZD at 99 ( ), while articulating (at 13:11 GMT ).