FxWirePro: Antipodeans break channel resistance, major consolidation phase remains robust, Shooting star signals weakness in minor trend

Amid AUDNZD rallies, shooting star and a potential spinning top have occurred at peaks of 1.0837 and 1.1102 levels.

Thereby, the momentum in these rallies seem to have been hampered momentarily as these bearish pattern candles indicate weakness at stiff resistance levels of 1.1139 but bullish sentiments still remain intact as the current prices well above 21DMA.

Any time bulls may resume and take on rallies to prolong. The price spikes are in conformity to the massive volumes formation.

While on a broader perspective, the previous major downtrend has been drifting into the consolidation phase, downswings slide through sloping channel. But for now, consolidation phase tests strong supports at 1.0346 levels and bulls have managed to break out the channel resistance (refer monthly charts). The sustenance above these levels likely to prolong rallies for next northward targets.

The current prices, on this timeframe, have been well above EMAs with bullish crossover. Both leading as well as lagging oscillators are in bulls favor.

Both RSI and stochastic curves have been constantly converging upwards to the price spikes on this timeframe. While MACD, on the other hand, indicates this uptrend likely to prolong.

Hence, don’t seek dramatic slumps in near term although bears are hovering for minor price dips, we foresee the strength to persist.

Trade tips:

Contemplating above technical rationale, we advocate tunnel spreads on speculative grounds with upper strikes at 1.1139 and lower strikes at 1.1030 levels. Alternatively, one can add longs in futures contracts of mid-month tenors that likely to arrest further potential upside risks, but maintain a strict stop loss at 1.0959 (i.e. 21DMA levels).

Currency Strength Index: FxWirePro's hourly AUD spot index is flashing 37 (which is bullish), while hourly NZD spot index was at -23 (bearish) at 05:29 GMT. For more details on the index, please refer below weblink:

http://www.fxwirepro.com/currencyindex.

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