FxWirePro: EUR/NZD double bottom counters major downtrend and fortifies consolidation phase but bears in minor trend linger to breach channel support

Chart pattern formed- Rising channel (on daily plotting) and double bottom pattern with bottom 1 at 1.3881 and 1.4534 levels (on monthly plotting).

The double bottom pattern helps in recognizing the higher probability opportunities to buy, or go "long."

Whereas the short-term trend has recently been testing the channel support at 1.6744 and 1.6794 levels, consequently, made a fake high upto 1.7064 and 1.7026.

That’s where shooting star has occurred and shown the failure swings, as a result, the bears are attempting to break below channel support hovering below 7DMAs.

The current price drop below DMAs are seen today, one could observe selling pressures are backed by both leading oscillators.

RSI, so far, has been converging downwards along with the price drops, that signals the strength in the downtrend. Stochastic curves have been indecisive but slightly bearish bias.

On a broader perspective, the major trend forms the double bottom pattern with bottom 1 at 1.3881 and bottom 2 at 1.4534 levels.

Stiff resistance is observed at 1.7285 and 1.8552 levels. It seems little puzzling whether this double bottom pattern can break-out these stiff resistance levels?

The current price spikes above EMAs with bullish crossover, the sustenance above will extend rallies.

Both lagging indicators (EMAs and MACD) substantiate this bullish environment (refer monthly chart) while leading oscillators have been popping up selling pressures.

7EMA crosses over 21EMA levels which is bullish EMA crossover that indicates the uptrend extension further which is in line with the above stated bullish chart pattern.

Additionally, MACD has also shown bullish crossover which is again a substantiation to prolong the prevailing uptrend (refer monthly plotting).

Trade tips:

Contemplating above bearish environment coupled by the momentum oscillators, it is wise to buy one touch binary put options strategy, the strategy is likely to fetch leveraged yields as long as underlying spot FX keeps dipping southward on or before the binary expiry duration.

Alternatively, as the major trend continues to inch higher, we advocate bidding longs in the futures contracts of mid-month tenors to mitigate upside risks.

Currency Strength Index: FxWirePro's hourly EUR spot index is displaying shy above 82 levels (highly bullish), while hourly NZD spot index was inching higher towards 113 (highly bullish) while articulating (at 11:28 GMT). For more details on the index, please refer below weblink:

http://www.fxwirepro.com/currencyindex

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