FxWirePro: Can bullish engulfing pattern breach AUD/USD channel resistance? Spinning top and hanging man hampers momentum

Spinning top & hanging man patterns have been traced out at 0.7579 and 0.7571 level that has evidenced price dips below 7DMAs, but bulls have managed to bounce back (refer daily), holding stronger at 7DMAs, channel resistance, and 21EMAs again (refer monthly).

Although the bulls continue to carry yesterday’s rallies, we now see stiff resistance at 0.7581 levels.

Leading oscillators have been indecisive but losing strength in the previous uptrend.

As stated in our previous post, the major downtrend has been sliding through sloping channel but in the recent past it has gone into consolidation pattern (stuck in a range between 0.7747 levels on north &  0.7162 levels on south) but after testing support 0.7162 levels the prevailing upswings may prolong upto channel resistance (refer monthly plotting).

The bullish engulfing pattern occurs but current upswings restrained below 21EMAs.

Hence, considering intraday bull swings and recent bearish occurrence, the speculators can eye on boundary binary options by using cash-or-nothing options for targets around 40-50 pips.

Upper strikes – 0.7581; lower strikes around 40 pips below 0.7526 levels.

The trading between these strikes likely to derive certain yields in this puzzling trend and more importantly these yields are exponential from spot FX.

For cash or nothing, these options would be exercised if the forward prices to remain between both strikes (i.e. 0.7581 > Fwd price > 0.7526).