This APAC pair has tested supports at 0.6750 levels (7DMA is at 0.6732, 7th Mar lows and 4th and 5th of Feb highs), but bearish pressures was also seen at 0.6780 for short term trend as it rejected resistance at this levels.

From last Thursday's price jump have taken the spot prices well above 7 & 21DMAs, but from 0.6870 it has pushing southwards again.

On the contrary, a potential breach below 0.6750 would determine short term dips again.

Previous long term bearish trend now moving in sideways if you have to observe monthly graphs which means bulls now holding stronger (see monthly charts, trend moving in sloping channel but for now holding stronger).

Leading oscillators indecisive but slightly bearish bias for the day, RSI shows divergence at around 55 levels on daily and converging on monthly, while same is the case with slow stochastic curve, bullish crossover at oversold zone.

So, we interpret this as bullish alarm for long term investors but short term speculators can use our below trading strategy in this puzzling trend.

Trade tips:

2D NZDUSD ATM IVs are spiking at 18.17%, risk averse bears should wait for breach of 0.6750 to initiate shorts, otherwise last week's upswings may prolong.

Alternatively, the trade strategy for such classes would be the boundary binary options on intraday speculation basis.

Buy cash-or-nothing options using boundary binaries for targets around 40-50 pips.

Upper strikes - 0.6798; lower strikes 40 pips below 0.6750.

The trading between these strikes would derive certain yields in this puzzling trend and more importantly these yields are exponential from spot FX.

For cash or nothing, we use Nd1, these options will be exercised if forward price to remain between both strikes (i.e. 0.6798> Fwd price > 0.6710).
The positive payoff is possible; only if the NZDUSD spot value touchesthe strike price, and is nothing if it never does by the expiration of the contract.