FxWirePro: NZD/USD hammer more imminent than gravestone doji, bulls shrug-off bearish patterns – Trade boundary strikes but never buck major trend

Technical Chart And Candlestick Patterns: Ever since the formation of hammer pattern candlestick at 0.6691 levels (on 3rdJan), NZDUSD bulls have been attempting to counter last December month bearish pressures (refer daily chart). Can it be a bullish reversal in the major terms is still dubious. But in the short run, more rallies seem to be on cards upon bullish MACD crossover & intensified buying momentum signaled by both leading oscillators on the daily time frame. 

The current price spike well above DMAs on the above-mentioned bullish formation, sensing stiff resistance at 0.6915 - 0.6925 levels.

RSI and Stochastic curves show upward convergence to the prevailing bullish rallies signal the strength and the intensified momentum in the ongoing interim uptrend.

However, although the interim bulls attempt to bounce but restrained at 21-EMA levels (refer monthly plotting), While bears likely to extend further on the triple top formation.

Observe steep slumps below EMAs on the breach below the neckline on this timeframe, this reminds us of the major downtrend as both leading and lagging indicators are still bearish bias in the major trend.

Trading Tips: At spot reference: 0.6909 levels, contemplating above technical rationale in order to participate in the current uptrend but not to buck the major trend, those who are aggressively looking at this pair are advocated to trade boundary options with upper strikes at 0.6938 and lower strikes at 0.6885 levels. 

Alternatively, for those we foresee the long-term exposures, shorting futures of mid-month tenors have been advocated in the past with a view of arresting further potential slumps, we wish to uphold the same positions. Writers in a futures contract are expected to maintain margins in order to open and maintain a short futures position.

Currency Strength Index: FxWirePro's hourly NZD spot index is inching towards 95 levels (which is bullish), while hourly USD spot index was at -24 (mildly bearish) while articulating (at 05:59 GMT).

For more details on the index, please refer below weblink: http://www.fxwirepro.com/currencyindex