• FxWirePro: NZD/USD shooting star checks minor uptrend – trading & hedging setup

    Source: FxWire Pro - Technicals / 01 Jul 2020 03:08:40   America/New_York

    The recent NZDUSD’s bullish patterns like engulfing patterns at 0.6478 levels including yesterday’s upward reversal is the indication of interim bulls are holding firm, potentially towards 0.6480 levels. Contrary to that stance, shooting star at peaks of 0.6535 levels caps the minor uptrend (refer daily chart). 

    Consequently, the bears are attempting to nudge prices below DMAs as you could observe on the daily chart.

    On a broader perspective, bears nudge below 21-EMAs & bulls restrained at this juncture, the major downtrend likely to resume at any time upon triple top pattern (refer monthly chart). 

    While both leading & lagging oscillators are in tandem with the puzzling swings in the major downtrend.

    Trade tips: At spot reference: 0.6455 levels (while articulating), contemplating above technical rationale, one can execute boundary options strategy. Such exotic option with upper strikes at 0.65 and lower strikes at 0.6375 levels likely to fetch exponential yields than the spot moves.

    Alternatively, ahead of US unemployment data announcements, we advocated shorts in NZDUSD futures contracts of mid-month tenors with a view to arresting potential dips, since further price dips are foreseen we would like to uphold the same strategy of July month deliveries.

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