FxWirePro

AUD bulls unlikely to gain traction against JPY

FX:NZDCAD   New Zealand Dollar/Canadian Dollar
79 1 4
AUD bulls unlikely to gain traction against JPY, bearish DMA crossover to evidence more slumps on break out below 0.9517 – Use DPS             to speculate:

The bearish crossover to evidence more slumps as current prices consistently remain below DMAs

The break below supports of 0.9517 signals bearish pressures, snap rallies to deploy fresh shorts.

Volume build-ups are mammoth on daily declining prices that are in conformity to the downtrend.

We see the strength in selling interest confirmed as RSI converging to the corresponding downswings.

While stochastic curves have been indecisive but indicate intensified selling momentum on monthly terms.

On monthly terms, Shooting star followed by hanging man has been traced at 0.9554 and 0.9587 levels respectively that threaten uptrend in medium trend.

Hence, we think the current prices jump above EMAs, and further upside potential is conditional on sustenance above at 0.9373 levels and the convincing signals from the leading and lagging oscillators. For now, we favor short term trend of this pair which is bearish at this juncture, consequently, we advocate debit put spreads ( DPS             ) of narrow tenors (1w3d) with strikes of 0.9517/0.9379.

1w ATM IVs are spiking above 14% which is good news for put option holders in prevailing downtrend scenario.
Kindly be noted that the article stands valid for the title "NZD bulls unlikely to gain traction against CAD", all insights advocated on this write pertains to NZDCAD.
Reply
United States
United Kingdom
India
Deutschland
España
France
Việt Nam
Italia
Polska
Brasil
Россия
Türkiye
Indonesia
Malaysia
日本
한국
简体
繁體
Home Stock Screener Forex Signal Finder Cryptocurrency Signal Finder Economic Calendar How It Works Chart Features House Rules Moderators Website & Broker Solutions Widgets Stock Charting Library Priority Support Feature Request Blog & News FAQ Help & Wiki Twitter
Profile Profile Settings Account and Billing Priority Support Ideas Published Followers Following Private Messages Chat Sign Out