FxWirePro: AUD/NZD minor trend in rising channel and major trend in range – One-touch calls to momentary bulls and strangle shorts for laggards

Chart and candlestick patterns formed: The AUDNZD bulls are attempting to make upside traction in both the minor trend and major consolidation phase. 

In this process, the minor trend has been spiking through rising channel pattern. As bull-swings move non-directional (refer daily plotting), both momentum and trend indicators have also been indecisive. But for now, you could easily make out bulls testing support at channel baseline.

The current upswings at 1.0917 likely to test major barrier at 1.0944 levels to create bullish traction (daily chart). 

The major consolidation phase that has lasted for more than 4 and a half years now stuck in range, both leading oscillators indicate strength in rallies (refer monthly plotting). Overall, some sort of consolidation just above 1.1050 is foreseen, and then a resumption of the multi-month points.

One-touch call options: Contemplating intraday bullish sentiments, if the prevailing rallies sustain above 1.0903 levels (i.e. 7-DMAs), bulls likely to extend further upto 1.0944 levels on strong support channel baseline. Thus, at spot reference: 1.0914 levels, one-touch option strategy is advocated on intraday trading basis, using upper strikes at 1.0944 levels.

The trading strategy likely to fetch yields that would be exponential than spot trades when the forward FX prices keeps spiking higher upto upper strikes on the expiration.

Strangle shorts:As you could observe the swings in the major trend have been oscillating between 1.1423 and 1.0333 levels since June 2015, it is wise to deploy (0.5%) out-of-the-money call and (0.5%) out-of-the-money put options of 1m tenor as shown in the diagram. The strategy can be executed at the net credit and certain yields would be derived in the form of initial premium received as long as the underlying spot FX remains between OTM strikes on the expiration. 

Currency Strength Index: FxWirePro's hourly AUD spot index is inching towards -47 levels (which is bearish), while hourly NZD spot index was at 61 (bullish) while articulating (at 06:19 GMT). For more details on the index, please refer below weblink:

http://www.fxwirepro.com/currencyindex