FxWirePro: EUR/USD bears oscillate in symmetric triangle in minor trend, on verge of retracing 50% Fibos between 2017 lows and 2018 highs

The political stability achieved overnight has led to EURUSD prices firming a little. However, this is only within the current range between 1.1510 and 1.1725.

Minor trend oscillates between symmetric triangle sides. The bears are hovering at symmetric triangle resistance with shooting star with faded strength (refer 1H chart), the stiff resistance is observed at 1.1675 levels. Any break-out above likely to drag more rallies, otherwise, any failure swings to resume price slumps again..

On the contrary, with 1.1510-1.1435 main support, a move through 1.1725 and then 1.1855 will add conviction that rally is underway.

On a broader perspective, our analysis emphasizes 1.0340 as a major low (2017), which completed the cycle from the 1.60 highs in 2008. But in the same major trend, bearish candlestick patterns, such as, shooting stars and hanging man evidence considerable price slumps, the current price slides below 7EMA as both leading oscillators signal weakness, bears on the verge of retracing 50% Fibonacci levels from 2018 highs (i.e. 1.2555 levels).

At spot reference: 1.1669 levels, tunnel options spread is advocated on trading grounds using upper strikes at 1.1680 levels and lower strikes at 1.1660 levels. The strategy is likely to derive exponential yields as long as the underlying spot keeps dipping but remains well above lower strikes on expiration.

On hedging grounds, initiate shorts in futures contracts of mid-month tenors with a view to arresting bearish risks.

Currency Strength Index: FxWirePro's hourly EUR spot index is inching towards 50 levels (which is bullish), while USD is flashing at -108 (which is bearish) while articulating at (06:37 GMT). For more details on the index, please refer below weblink:

http://www.fxwirepro.com/currencyindex

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