FxWirePro: AUD/NZD Dojis and spinning top hamper momentum but major trend attempts to break channel resistance – Deploy tunnel spreads and long hedge

Spinning top and gravestone dojis have occurred at peaks of 1.0937 and 1.0939 levels.

AUDNZD rallies seem to have been exhausted today as these bearish pattern candles may hamper momentum in rallies but bullish sentiments still remain intact as the current prices well above 21DMA.

Any time bulls may resume and take on rallies to prolong. The price spikes are in conformity to the massive volumes formation.

While on a broader perspective, the major trend has been downtrend, downswings slide through sloping channel. But for now, goes in the consolidation phase and bulls have managed to break out the channel resistance. The sustenance above is closely watched for next northward targets.

The current prices, on this timeframe, have been well above EMAs. Both leading as well as lagging oscillators are in bulls favor.

Both RSI and stochastic curves have been constantly converging upwards to the price spikes. While MACD, on the other hand, indicates this uptrend likely to prolong.

Hence, don’t seek dramatic slumps in near term although bears are hovering for minor price dips, we foresee the strength to persist.

Trade tips:

Contemplating above technical rationale, we advocate tunnel spreads on speculative grounds with upper strikes at 1.0944 and lower strikes at 1.0919 levels.

Alternatively, one can add longs in futures contracts of mid-month tenors that likely to arrest further potential upside risks, but maintain a strict stop loss at 1.0850 levels.

Currency Strength Index: FxWirePro's hourly AUD spot index is flashing -85 (which is bearish), while hourly NZD spot index was at -137 (highly bearish) at 05:19 GMT. For more details on the index, please refer below weblink:

http://www.fxwirepro.com/currencyindex.

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http://www.fxwirepro.com/invest