FxWirePro: AUD/NZD interim bulls gain traction on bullish engulfing – Long via digital calls as bullish DMA crossover to drag rallies upto channel resistance

The bulls have reacted as anticipated by FxWirePro; before we begin with this write-up please go through below web link for our previous article on this pair:

http://www.econotimes.com/FxWirePro-AUD-NZD-forms-hammer-after-dragonfly-doji-more-likely-to-extend-rallies-major-downtrend-remains-intact--boundary-binaries-to-speculate-528758

On the monthly chart, amid the prevailing uptrend from last two months, bulls have managed bounce above EMAs.

Finally sustained the break above the very important 1.0765 area, and now targets 1.0875 (Feb 2016 minor peaks) during the week ahead.

The bullish engulfing pattern at 1.0644 levels (see last month’s candle).

On weekly plotting, at the breach of above specified stiff resistance levels, you could see 7WMA crossing over 21WMA which is the bullish crossover.

The current prices on both weekly as well as monthly terms are well above WMAs and EMAs respectively.

Well, considering the broader picture, the downswings have been slipping through sloping channel, every price bounces were rejected either at channel resistance or at EMAs and every dips were supported at channel baseline.

Bulls seem to be likely to drag rallies up to channel resistances as momentum is intensified.

The current prices have gone above EMAs (but not bullish signals), while MACD on weekly term indicates upswings to prolong but on monthly charts evidences indecisiveness remaining in bearish trajectory below zero level, so we foresee bearish swings to be prolonged.

Both leading indicators (RSI & stochastic) on both time frames are signaling prolonged buying sentiments. RSI evidences the upward convergence with the ongoing price spikes that signifies the strength in the bullish trend, (currently, RSI trending at 70 levels which is signaling overbought pressures on daily and on monthly terms also indicates momentary bullish sentiments).

While stochastic curve at 20 levels which is oversold zone has been evidencing any %K crossover on monthlies and approached overbought zone on weekly term but no traces of bearish crossover. This leading oscillator has been little indecisive.

So, contemplating the momentum in interim rallies we advocate one touch binary calls to speculate for targets for 25-30 on the north.