NZD/USD Chartpack - Technicals & Trade Setup
NZDUSD interim uptrend seems to be imminent upon the flurry of bullish candles and chart patterns as emphasized below.
The intermediary bullish trend and the consolidation phase spikes through the uptrend line (refer both daily and monthly plotting).
The pair forms hammer patterns at the uptrend line, to be precise, 0.6520, 0.6691 levels on the daily chart and 0,6390 levels on monthly terms.
3-white soldiers and bullish engulfing pattern candles have occurred at 0.6860 and 0.6879 levels on daily and monthly terms respectively.
All these bullish patterns cushion the interim uptrend and the consolidation phase on the major downtrend,
For now, more rallies seem to be on the cards as both momentum and trend indicators turn in bulls' favor in the minor trend. Both RSI and stochastic curves show upward convergence along with prevailing price rallies to indicate intensified buying momentum.
While the bullish DMA and MACD crossovers indicate the upswings to prolong further (daily) Nevertheless, Bears may resume and extend the major downtrend at any time, unless and until bulls manage to break-out 21-EMAs decisively (monthly chart). Bears will have the equal opportunity upon breach below the triple top neckline, both leading & lagging indicators, on this timeframe, are still slightly bearish bias in the major downtrend.
Trade tips: Well, on trading perspective, at spot reference: 0.6857 levels, contemplating above-stated technical rationale, it is advisable to deploy double touch call option strategy using upper strikes at 0.6874, the strategy is likely to fetch leveraged yields as long as the underlying spot FX keeps rising on the expiration.
Alternatively, on hedging grounds, we advocate shorting futures contracts of mid-month tenors ahead of US Fed’s monetary policy that is scheduled for this week, as the underlying spot FX likely to target southwards 0.66 levels in the medium-term.
Writers in a futures contract are expected to maintain margins in order to open and maintain a short futures position.
Currency Strength Index: FxWirePro's hourly NZD spot index is inching towards -15 levels (which is mildly bearish), while hourly USD spot index was at -62 (bearish) while articulating (at 06:10 GMT).
The intermediary bullish trend and the consolidation phase spikes through the uptrend line (refer both daily and monthly plotting).
The pair forms hammer patterns at the uptrend line, to be precise, 0.6520, 0.6691 levels on the daily chart and 0,6390 levels on monthly terms.
3-white soldiers and bullish engulfing pattern candles have occurred at 0.6860 and 0.6879 levels on daily and monthly terms respectively.
All these bullish patterns cushion the interim uptrend and the consolidation phase on the major downtrend,
For now, more rallies seem to be on the cards as both momentum and trend indicators turn in bulls' favor in the minor trend. Both RSI and stochastic curves show upward convergence along with prevailing price rallies to indicate intensified buying momentum.
While the bullish DMA and MACD crossovers indicate the upswings to prolong further (daily) Nevertheless, Bears may resume and extend the major downtrend at any time, unless and until bulls manage to break-out 21-EMAs decisively (monthly chart). Bears will have the equal opportunity upon breach below the triple top neckline, both leading & lagging indicators, on this timeframe, are still slightly bearish bias in the major downtrend.
Trade tips: Well, on trading perspective, at spot reference: 0.6857 levels, contemplating above-stated technical rationale, it is advisable to deploy double touch call option strategy using upper strikes at 0.6874, the strategy is likely to fetch leveraged yields as long as the underlying spot FX keeps rising on the expiration.
Alternatively, on hedging grounds, we advocate shorting futures contracts of mid-month tenors ahead of US Fed’s monetary policy that is scheduled for this week, as the underlying spot FX likely to target southwards 0.66 levels in the medium-term.
Writers in a futures contract are expected to maintain margins in order to open and maintain a short futures position.
Currency Strength Index: FxWirePro's hourly NZD spot index is inching towards -15 levels (which is mildly bearish), while hourly USD spot index was at -62 (bearish) while articulating (at 06:10 GMT).