FxWirePro: Spot EUR/USD tug of war between bulls and bears in whipsaws, downswings likely on streaks of bearish pattern formations

EURUSD forms shooting star at 1.2366 levels.

The stiff resistance levels are observed at 1.2446 and 1.2531 levels

The bearish pattern candle hampers previous rallies, any slide & sustenance below DMAs to drag price dips.

The minor trend has been drifting in sideways and shown failure swings at the stiff resistance of 1.2290 levels.

On the flip side, the intermediate trend has been stuck in the range between 1.2555 and 1.2205 levels.

Hanging man and shooting star pattern candles have occurred at 1.2316, 1.2303, 1.2287 and 1.2320 levels (refer rectangular area on weekly plotting).

Any break-out of this channel on both side and the sustenance of that level likely to drag rallies on either side.

However, the price behavior has been jerky today as it goes in non-directional, after firm bull trend, the bears have been forming whipsaws pattern which is signaling weakness.

RSI and stochastic curves have shown downward convergence that indicates strength and intensified bearish momentum (weekly terms). While these indications have been little indecisive but indicated faded strength.

The trend indicator (MACD) signal downswings to prolong further.

On a broader perspective, the consolidation phase in the major trend that was bullish now turned into bearish. After last three months struggle for healthy bullish momentum, the current prices have popped-up flurry of bearish patterns, such as hanging man, shooting star at peak of rallies coupled with bearish MACD crossover on monthly terms.

Hence, at spot reference: 1.2335 levels, contemplating bearish sentiments in the minor trend, on trading grounds, it is advisable to buy tunnel spread. The binary options strategy using upper strikes at 1.2368 and lower strikes at 1.2299 levels are advocated to participate in the bearish sentiments.

Thereby, the intraday traders can speculate between upward targets about 30-35 pips on the north and about 35 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.

Currency Strength Index: FxWirePro's hourly EUR spot index is displaying shy above -34 levels (which is bearish). While hourly USD spot index was inching towards 90 (bullish) while articulating (at 07:35 GMT).

For more details on the index, please refer below weblink: http://www.fxwirepro.com/currencyindex

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