While we spot out a potential head and shoulder pattern in the minor trend. Moreover, the trend has been sliding through sloping channel which is in nature.
Today’s rallies are exactly restrained below 21-DMA and channel resistance as signaling the strength in selling sentiment, as a result, a potential head & shoulder pattern possible.
On the contrary, breach of the stiff channel resistance may show strength in the rallies.
On a broader perspective, the break-out of above-stated stiff resistance levels forms new environment.
Historically, you could make out the prices have tumbled as it failed to sustain above this and how the price behavior has been dipping further.
While also substantiates the stance, lagging oscillator evidences crossover to indicate the price dips to prolong further.
Having said that, we conclude by stating, overall, both intermediate and minor trends seem to be in bears favor but with a little pinch of salt in intermediate trend.
As a result, contemplating the skepticism, on trading grounds, it is advisable to deploy binary tunnel option spreads with upper strikes at 1.5991 and lower strikes at 1.5909 with a view to participating in rallies as well.
Alternatively, at spot reference: 1.5940, contemplating intermediate uptrend, on hedging grounds we recommend adding longs in contracts of far-month month tenors.
Holders in a contract are expected to maintain margins in order to open and maintain a longs position.
Currency Strength Index: FxWirePro's hourly EUR spot index is flashing at -26 (which is ), while hourly AUD spot index was at 56 ( ) while articulating (at 11:40 GMT ).