Streaks of NZDUSD rallies that have now gone above DMAs upon formation at 0.65250 levels. On minor trend of this pair, stiff resistance is observed at 0.6711 levels.
, and patterns have occurred at around this , consequently, plummeted price below DMAs in the recent past.
But for now, more rallies seem to be on cards upon crossover and intensified buying momentum, DMA is yet to clarify though (refer daily plotting). Hence, amid the mild sentiments, it is not wise to conclude this as reversal.
On the major trend, the pair forms triple top pattern with top1 at 0.7485, top2 at 07558, top3 at 07437 and neckline at 06787 levels.
Consequently, bears are extending price slumps. Please observe steep slumps below EMAs (refer monthly chart). Although a pattern occurred at 0.6817 level that attempts to counter at neckline, while both leading and lagging indicators have been bias.
For now, and crossovers on this timeframe indicate the downswings are most likely to extend further. To substantiate this stance, both leading oscillators show constant downward convergence to the prevailing price slumps that signal intensified momentum ahead of next week’s RBNZ (scheduled on September 26th).
Any failure swing at stiff resistance (0.6711 levels), downtrend seems most likely on crossovers signaled by the lagging indicators.
Trade tips: On daily trading grounds, at spot reference: 0.6658 levels, contemplating above technical rationale it is wise to buy one-touch call options with strikes at 0.6684 levels.
Alternatively, on hedging grounds, we advocate shorting contracts of mid-month tenors as the underlying spot FX likely to target southwards 0.65 levels in the medium run.
Writers in a contract are expected to maintain margins in order to open and maintain a short position.
FxWirePro Currency Strength Index: FxWirePro's Hourly USD Spot Index was at -28 (which is ), while Hourly NZD Spot Index was at 73 ( ) at 09:53 GMT .