EURUSD minor trend has shown failure swings at the stiff resistance of 1.2446 levels.
The resumption of bears with the failure swings at this stiff resistance evidences steep price slumps, consequently, the prices slid below DMAs.
At the same level, pop up in the recent past to signal weakness, for now, more dips seem to be on cards upon DMA & crossovers (refer daily plotting).
The price behavior has been jerky today as it goes in sideways, however, bears have been attempting to drag the slumps from yesterday’s close at 1.2277 levels.
So far, the trend continues to be weaker as upswings restrained below 7DMAs and the stiff resistance at 1.2413 levels, while both leading oscillators ( and curves) converge downwards to the ongoing price dips.
The minor trend has been weaker as both trend indicators show crossovers. 7DMA crosses below 21DMA, while also shows crossover that indicates downswings to prolong further upto the next strong support 1.2199 levels.
On the flip side, in the broader perspectives, consolidation phase in the major trend of this pair has been . Despite last two-three months struggle for healthy momentum, the current prices are still well above EMAs with and crossover on monthly terms.
Hence, at spot reference: 1.2271 levels, contemplating sentiments in the minor trend, on trading grounds, it is advisable to buy tunnel spread. The binary options strategy using upper strikes at 1.23 and lower strikes at 1.2241 levels is advocated to participate in the sentiments.
Thereby, the intraday traders can speculate between upward targets about 25-30 pips on north and 30 pips southwards. The strategy is likely to fetch leveraged yields as long as underlying spot FX keeps dipping but to remain above lower strikes on the binary expiration.
It is wise to use dips and add longs using forward contracts, we advocate adding longs in mid-month with a view to arresting upside risks.
Currency Strength Index: FxWirePro's hourly EUR spot index is displaying shy above -35 levels (which is ). While hourly USD spot index was inching towards 1 (absolutely neutral) while articulating (at 06:07 GMT ).