FxWirePro: EUR/USD retraces 61.8% Fibos on failure swings at channel resistance – Trade tunnel spreads on bearish engulfing and shooting star

EURUSD interim upswings are not backed by technical indicators, the current prices plummet well below DMAs on bearish engulfing and gravestone doji patterns at stiff resistance (i.e. 1.1501 levels). For now, further slumps seem to be most likely on overbought pressures (refer daily chart).

Major downtrend has been sliding through sloping channel, where bears retrace 61.8% Fibonacci levels from 2018 highs on the failure swings at channel resistance as both leading oscillators signal bearish momentum (refer monthly chart).

Shooting star, hanging man pattern pops-up at peaks in the major trend, ever since then you could make out bears have shown their effects, steep slumps have gone below EMA levels and retraced more than 61.8% Fibonacci levels of January 2018 highs (i.e. 1.2612) and January 2017 lows (i.e. 1.0371 levels) (refer monthly chart). 

Overall, the current price still remains well below 21-EMAs despite today’s rallies in a short-run, bears are most likely to extend 1 and half year lows.

We could foresee more slumps on cards as both leading oscillators (RSI and stochastic curves) and both trend indicators (DMAs, EMAs & MACD) have been signaling intensified bearish momentum and downtrend continuation respectively. 

At spot reference: 1.1332 levels, contemplating above technical rationale, one can execute tunnel spread options strategy. Such exotic option with upper strikes at 1.1360 and lower strikes at 1.13 levels have been unbiased strategy but to favor slightly the bearish sentiments. 

Currency Strength Index: FxWirePro's hourly EUR spot index is inching towards -94 levels (which is bearish), while hourly USD spot index was at 141 (bullish) while articulating (at 07:07 GMT). For more details on the index, please refer below weblink:

http://www.fxwirepro.com/currencyindex