FxWirePro: AUD/USD on verge of 3-months highs after breaching strong resistance, major trend still range bounded – One touch binary to magnify yields

Ever since AUDUSD bulls have bottomed out at 0.7369, the prices have constantly remained above 7 & 21DMAs but for today, both leading and lagging oscillators’ have been bearish bias (refer 4H charts).

On daily terms, bulls break above stiff resistance at 0.7605 levels, the sustenance above likely to drag rallies, otherwise prices to slide below DMAs again,

Last week, a shooting star pattern candle pattern has already been popped up at 0.7579 levels to signal the weakness at this peak.

On the contrary, despite the bearish swings in last three months, bulls have managed to pull back prices above EMAs so as to ensure the major trend to prolong in range.

Shooting star has evidenced slumps but the major trend now stuck in the range, Current prices attempting to break below 21EMA.

The major trend has now been in the consolidation phase that seems to be drifting in tight range; any attempts of failure swings at this level (at 21EMA) likely to resume major downtrend (refer monthly charts).

Both momentum indicators (in monthly terms) have been indecisive but losing strength in the previous uptrend, while on intraday terms have also been indecisive but slightly in bears’ favor.

The prevailing upswings are not favored by healthy bullish momentum both RSI and stochastic curves at this juncture. MACD on this timeframe signals bullish swings to prolong further.

At spot reference: 0.7605 the intraday speculators can eye on targets between 0.7630-40 which mean another 30-40 pips. Hence, we would wish to use one touch binary call options at every dip. This leveraged instrument can have an ability to give in magnifying effects to its payoff on every underlying price spikes.