On weekly charts, even though it has rejected resistance at 0.6723 from last two weeks, current prices have been well above 21DMA and 7DMA on daily charts, same is the case on weekly plotting.
These spikes that are in conformity with robust volumes have breached channel resistance and made an intermediary resistance at 0.6723.
Even though the formation of shooting star at this juncture we think it is likely to retest intermediary resistance at 0.6723 as there is no signal from both leading and lagging indicators.
On daily terms, stochastic shows divergence again and has been flashing %K crossover seen at 60s. Contemplating on short term uptrend, the strength in momentum is confirmed by RSI as this momentum oscillator converges these price rallies.
With 7DMA crossing over 21DMA we see no trace of selling pressures in a short run but he risk bias to antipodean currencies remains firmly to the downside in 2016.
Well, keeping above stated resistance in mind (0.6723) one can speculate this pair with binary one touch calls (beyond boundaries for 50-60 pips) but in the contrast advice for long-term investors is that don't get bull trapped in this pair as it is clearly dipping within a southward channel that has moved way below 21DMA on weekly as well. We are fairly positioned for bearish targets in 2016 and forecast for NZD/USD at 0.59 by Q1 of 2016 and 0.61 by Q4 of 2016.
