The New Year trade (January) series for NZDUSD has been extremely in bulls favor, the upswings from the lows of 0.6885 to the current 0.7313 levels, last month candle for now seems to be bullish engulfing pattern.
These sharp rallies appear to be the substantiation for the consolidation phase that had begun since September 2015.
The upswings, for now, are approaching stiff resistance at 0.7378 levels, please be noted that is where the bearish patterns such as “Shooting star and railroad pattern” have been occurred at this juncture.
The recent upswings have consistently rejected below this stiff resistance levels.
On broader perspective, shooting stars is traced out 0.7282 levels that evidences the steep slumps (refer monthly charts), consequently, bearish candles with big real bodies and upper & lower shadows occurred consecutively that they finished to seem like 3-black crows.
Shooting stars evidence slumps below 7SMAs, while bulls have tested supports at 21EMA.
Rallies rejected again at stiff resistance of 0.7241 levels and broken major supports 0.7038 levels.
To substantiate this stance, both leading indicators (RSI & stochastic curves) evidence the bullish convergence that signals strength and momentum in buying on both weekly as well as monthly terms.
Trading tips:
For intraday trading perspective, it is advisable to buy boundary binaries on dips upper strikes at 0.7378 and lower strikes at 0.7244 which means from spot reference upward travel maximum upto 70-80 pips and 70-80 on southward targets within the binary expiry duration.
