FxWirePro: AUD/USD triple top very much on cards despite upswings hovering at SMAs and EMAs, major trend likely to restrain below channel resistance

AUDUSD bulls attempt break-out minor resistance of 7 & 21DMAs but restrained below 21EMAs on weekly terms.

Despite the bullish swings, bears have managed to pull back prices below 21EMAs. Triple top formation seems to be most likely, and back-to-back bearish pattern candles have occurred on both weekly and monthly terms to evidence more slumps (shooting star and spinning top patterns).

The major trend has now been in consolidation phase drifting in the sloping channel, as the current prices are heading towards channel resistance, any attempts of failure swings at this level and 21EMA likely to resume major downtrend (refer monthly charts).

The prices dropped after consistently restrained at 0.7761 &been breaking major supports at 0.7439, the current price has again slid below EMAs. Momentum indicators (in monthly terms) have been indecisive but losing strength in the previous uptrend.

For the week, upswings are not favored by healthy bullish momentum both RSI and stochastic curves, instead of converging downwards. MACD on this timeframe signals bearish swings to prolong further, while the lagging indicator remains in bearish trajectory.

Hence, at spot reference: 0.7527 the intraday speculators can eye on targets between 7 & 21DMAs, which means upward travel of another 50-75 pips (i.e. stiff resistance at 0.76) and downwards about 30-40 pips can be possible as we don’t see any further buying interest from here onwards.

Contemplating above daily bullish sentiment, on trading perspective, it is advisable to buy boundary binaries on dips upper strikes at 0.76 and lower strikes at 0.7480 levels, the strategy is likely to fetch leveraged yields as long as underlying spot FX remains within these strikes on or before the binary expiry duration. On the flip side, stay short in mid-month futures on hedging grounds as more slumps are on the cards in the weeks to come.