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NZD/USD bulls flirting overbought territory

FX:NZDUSD   New Zealand Dollar/U.S. Dollar
118 0 6
We could observe NZDUSD             has been going in consolidation pattern as the previous long term bearish trend now moving in sideways to upswings that mean bulls now holding stronger (see monthly charts, trend spike above EMAs).

Although NZDUSD             has tested supports at 0.6626 levels, bearish pressures at 0.7150 can't be disregarded for short term trend ahead of next week’s Fed’s monetary policy meeting.

On the contrary, a potential breach of 0.7150 would determine medium term rallies, 0.7150 with 1% tolerance is seen a barrier for the medium-term trend reversal in the months to come.

Breaks out above resistance at 0.6896 and price jump above 21EMA likely to evidence more rallies in medium run but term bears are active ahead of Fed.

But the major cause of concern for short-term bulls is that leading oscillators have approached above 80 levels and attempt to show overbought pressures.

Both RSI and stochastic curves show have halted in overbought territory but on monthly charts a positive convergence to the ongoing intermediate rallies.

Well, overall what we are trying emphasize in this write up is that – intermediate bulls are very much on the cards but never isolate a technical call, wait for confirmation from fundamental events (that is scheduled for next week) or better clarity in the above signal (breach of 0.7150) to avoid sentiments in long lasting bearish trend that may bring in deceptive swings to wipe off your long-term investments.

Using boundary binaries, the trader has the opportunity to speculate if an asset’s price will stay within a confined price range for a certain period of time, (At spot reference 0.7104, upper strikes 50 pips above and lower strikes 50 pips below).

So, please be noted that this is exclusively on speculative grounds, should not be rolled over continually since there is a significant economic event scheduled for next week.
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