From last Thursday's price jump have taken the spot prices well above 7 & 21DMAs, but from 0.6870 it has pushing southwards again.
On the contrary, a potential breach below 0.6750 would determine short term dips again.
Previous long term now moving in sideways if you have to observe monthly graphs which means bulls now holding stronger (see monthly charts, trend moving in sloping channel but for now holding stronger).
Leading oscillators indecisive but slightly bias for the day, shows divergence at around 55 levels on daily and converging on monthly, while same is the case with slow curve, crossover at oversold zone.
So, we interpret this as alarm for long term investors but short term speculators can use our below trading strategy in this puzzling trend.
2D NZDUSD ATM IVs are spiking at 18.17%, risk averse bears should wait for breach of 0.6750 to initiate shorts, otherwise last week's upswings may prolong.
Alternatively, the trade strategy for such classes would be the boundary binary options on intraday speculation basis.
Buy cash-or-nothing options using boundary binaries for targets around 40-50 pips.
Upper strikes - 0.6798; lower strikes 40 pips below 0.6750.
The trading between these strikes would derive certain yields in this puzzling trend and more importantly these yields are exponential from spot FX.
For cash or nothing, these options would be exercised if the forward prices to remain between both strikes (i.e. 0.6798> Fwd price > 0.6710).