FxWirePro: AUD/NZD Technical Chartpack and Derivatives Trades Setup

Chart and candlestick patterns formed: AUDNZD current upswings form whipsaws at 7 & 21-DMAs to create bullish traction (refer daily chart), both momentum and trend indicators have been indecisive on this timeframe, whereas, the major trend still wedged in the range. 

Bulls make traction in major consolidation phase that's stuck in range, both leading oscillators indicate strength in rallies (refer monthly plotting). Overall, some sort of consolidation just above 1.1050 is foreseen, and then a resumption of the multi-month points.

Tunnel spreads: As the underlying spot FX is drifting in sideways, bears likely to plummet prices below DMAs again on overbought pressures. Thus, at spot reference: 1.1040 levels, tunnel spread option strategy is advocated on intraday speculative trading basis, use upper strikes at 1.1060 and lower strikes at 1.1020 levels.

The trading strategy likely to fetch yields that would be exponential than spot trades, via cash or nothing, these options would be exercised if the forward prices to remain between both strikes (i.e. 1.1060 > Fwd price > 1.1020).

Strangle shorts:As you could observe the swings in the major trend have been oscillating between 1.1423 and 1.0025 levels since December 2013, it is wise to deploy (0.5%) out-of-the-money call and (0.5%) out-of-the-money put options of 1m tenor as shown in the diagram. The strategy can be executed at the net credit and certain yields would be derived in the form of initial premium received as long as the underlying spot FX remains between OTM strikes on the expiration. 

Currency Strength Index:FxWirePro's hourly AUD spot index is inching towards 50 levels (which is bullish), while hourly NZD spot index was at 37 (bullish) while articulating (at 10:30 GMT). For more details on the index, please refer below weblink:

http://www.fxwirepro.com/currencyindex