FxWirePro: EUR/CHF bears resume after back-to-back shooting stars – Trade spot for luring risk/reward, one-touch put and short hedge

Technical Glance: EURCHF bears nudge prices below DMAs on bearish engulfing patterns (refer daily plotting), consequently, strong support is breached below 1.1307 levels. 

For today, mild rallies are unlikely to sustain as both leading oscillators (RSI & stochastic curves) signal intensified selling momentum, and the trend indicators show bearish DMA & MACD crossovers are also indicating the prevailing downtrend to prolong further.

Thus, for now, although you could see mild rallies today, the continuation of interim uptrend seems to be dubious (refer daily chart). 

On a broader perspective, the major trend resumes bearish swings on back-to-back shooting stars at 1.1358, 1.1384 and 1.1364 levels (refer monthly plotting).

Both leading oscillators RSI and stochastic curves indicate intensified bearish momentum, consequently, the current price slid below EMAs.

Trade Tips: Well, on trading perspective, at spot reference: 1.1220 levels, it is advisable to trade tunnel options spread using upper strikes at 1.1233 and lower strikes at 1.1190 levels. The strategy is likely to fetch leveraged yields as long as the underlying price remains between above strikes on the expiration.

Alternatively, on hedging grounds, we advocate initiating shorts in EURCHF futures contracts of June’19 delivery. Writers in a futures contract are expected to maintain margins in order to open and maintain a short futures position.

Currency Strength Index: FxWirePro's hourly EUR spot index is inching towards 3 levels (which is neutral), while hourly CHF spot index was at 54 (bullish) while articulating (at 10:50 GMT).

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