FxWirePro: AUD/NZD stiff tug of war between bulls and bears despite engulfing patterns, trend goes non-directional – Boundary binaries for 40-50 pips

AUDNZD has been rejecting from the stiff resistance of 1.0493 and dropping DMAs, from last couple days the price behaviour has been oscillating in this range (see 4H chart) but the momentary bulls attempting for upside traction in short run but seems unlikely to break resistances of 1.0493, only break above likely to make upward travel of another 100 pips, else bears have equal chances upon bearish crossover on DMAs.

Back-to-back engulfing patterns have been observed from last three-four days (both bullish and bearish candles).

The current prices attempt to spike above both 7 and 21-DMAs but fail to sustain.

RSI converges to the non-directional swings that keep intraday rallies within the range, but consistent downward convergence on dailies signals the strength in major bear trend (see the monthly chart).

Stochastic evidences %D crossover that indicates the intensified selling momentum in the major downtrend and short-term rallies seem to be deceptive. This momentum studies has been indecisive but slightly bearish.

For now, rallies began to rebuild positive momentum but struggling to break and sustain above 1.0493 levels.

Trade tips:

Well, on intraday terms, the trade strategy would be the boundary binary options by using cash-or-nothing options for targets around 40-50 pips.

At spot reference 1.0478, upper strikes – 1.0493 levels; lower strikes around 20 pips below 1.0458 levels (i.e. day lows).

The trading between these strikes likely to derive certain yields in this puzzling trend and more importantly these yields are exponential from spot FX.

For cash or nothing, these options would be exercised if the forward prices to remain between both strikes (i.e. 1.0493 > Fwd price > 1.0458).