FxWirePro: AUD/NZD hammer formation hammers bull swings, but rallies restrained at 21-DMA – Add longs in near month futures

AUDNZD bulls resume ever since the hammer pattern formed at 1.0483 levels, the current price spikes above DMAs again, likely to make equidistance travel on the upside (2.39%),  betting for hitting 1.0750 levels.

The intraday bearish swings could be snapped to optimally initiate longs in medium terms.

The buying momentum is confirmed by both leading indicators on daily terms (RSI and Stochastic converge upwards to the prevailing price upswings). On the daily chart, the leading oscillators heading towards overbought zones, RSI evidences the positive convergence with the every price bounces that signifies the strength in bullish momentum, (currently, RSI trending above 55 levels), while MACD has shown a bullish convergence.

The current prices on monthly terms also have jumped above 7EMAs.

However, prior to these upswings, the bearish swings evidence in the recent past Aussie dollar against Kiwi dollar upto the lows of 1.0363 levels, thereafter, the bulls began pushing hard vigorously to the highs of 1.0658 levels (almost about 2.84%).

AUDNZD surpasses recent bullish focal points: In between it has cleared resistances at 1.0514, 1.0588 levels and EMAs.

While there is no trace of selling indications even if stochastic curve reaches above 80 level which is overbought zone.

Bulls seem to be still in the picture as bounce back may take place if it tests support at 7EMA after recent RBNZ's monetary policy, forecasts remain for further rate cut prospects in its OCR going forward.

More importantly, daily prices have still been well above 7 & 21EMA curves that would mean that the upswings may extend further amid minor dips.

Well, having said that we wrap up with a concluding note, medium term bulls can speculate this pair capturing every price dip to go long in mid-month futures contracts for targets of 1.0766 levels.