Chart and candlestick patterns formed: Back-to-back hanging man, bearish engulfing, shooting star and spinning top patterns have occurred at peaks of rallies signal overbought pressures, both leading oscillators substantiate the bearish stances.
Hanging man at 1.0888 and 1.0895, bearish engulfing has occurred at 1.0851 levels, shooting star at 1.0924 and spinning top at 1.0929 levels (on dailies terms) that has plummeted prices.
As a result of these bearish pattern candlesticks, the rallies are constantly restrained below 1.0950 levels.
While the major downtrend of this pair that has gone into consolidation phase approximately from the last five years or so.
To substantiate this bearish stance, both leading indicators (EMA & MACD) show bearish crossovers that indicate the downtrend to prolong further.
Overall, as stated before the resumption of the major downtrend is viable at this juncture, even if you witness any abrupt upswings, that shouldn’t be deemed as panicky buying sentiment.
Instead, at spot reference: 1.0941 levels, boundary options strategy is advocated for the intraday speculative trades, use upper strikes at 1.0951 and lower strikes at 1.0915 levels.
The trading between these strikes likely to derive certain yields in this perplexed trend in the short term, more importantly, these yields are exponential from spot movements.
For cash or nothing, these options would be exercised if the forward prices to remain between both strikes (i.e. 1.0951 > Fwd price > 1.0915).
Currency Strength Index: FxWirePro's hourly AUD spot index is flashing at 103 levels (which is bullish), while hourly NZD spot index was at shy above 0 (absolutely neutral) while articulating (at 08:36 GMT). For more details on the index, please refer below weblink:
http://www.fxwirepro.com/currencyindex.
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