FxWirePro: 100-DMAs Major Hurdles For EUR/NZD Interim Bulls, Major Trend Develops In Rising Wedge – Trading & Hedging Setup

EURNZD rallies have bottomed out at 1.6618 levels to bounce above 7 & 21-DMAs. But the minor uptrend has been edgy especially after the formation of bearish pattern candles. Spinning top, doji & 100-DMAs cap the interim upswings, pivotal point is observed at 1.7150 level. 

Any breakout above these level can extend these upswings as both leading oscillators signal intensified buying momentum with minor overbought pressures, while bullish MACD crossover substantiates the prevailing buying sentiment (refer daily chart).

While on a broader perspective, the major trend spikes through rising wedge, gravestone doji & shooting star pattern keep a check on bulls (refer monthly chart). 

However, they attempt to bounce back on stern bullish engulfing pattern at 1.7158 levels as both momentum oscillators (RSI & Stochastic curves), on this plotting, signal the intensified buying momentum, the current price spikes above EMAs.

Trade tips: On daily trading grounds, at spot reference: 1.7071 levels, we advocate trading boundary option strategy using upper strikes at 1.7110 levels and lower strikes at 1.70 levels. The strategy is likely to fetch certain yields as long as the underlying price remains between these two strikes on the expiration.

Alternatively, as we could foresee further upside risks in the months to come, on hedging grounds, we advocate initiating fresh long build ups in EURNZD futures contracts of mid-month tenors ahead of RBNZ monetary policy that is scheduled for this week.