NZDJPY Bearish Reversal Intact: Triple EMA Stack Signals Sell-on-Rallies Play Toward 90.50 
FxWirePro: NZD/USD gains slightly but bearish outlook remains 
Sterling Surge: GBP/JPY Smashes Above 214 With Triple EMA Blessing; Bulls Eye 217 
FxWirePro: GBP/NZD edges lower but bias is bullish 
EURJPY Bearish Dent Intact: Sell the Relief Rally Toward 183/182 Support 
FxWirePro: GBP/AUD bulls gain momentum on hot U.S. Jobs data 
FxWirePro: GBP/USD falls to two-week low on strong US jobs data 
FxWirePro USD/JPY consolidates above 160.00 level despite fresh currency intervention threats 
FxWirePro: USD/JPY holds firm despite concerns over possible currency intervention 
FxWirePro: GBP/USD hovers near three week low, bearish outlook remains 
FxWirePro: USD/CAD bulls continue to hold the higher ground 
USD/CHF Retreats to Key Trend-Line Wall; Buy-Above-0.8000 Strategy Targets Sharp Rally to 0.8150 
FxWirePro: AUD/USD holds narrow range, focus on near-term support 
EUR/USD Relief Rally Crashes Into 200/365 EMA Wall: Sell-on-Rise Near 1.1600 Targets 1.1435 
FxWirePro: EUR/ NZD consolidating around 1.9855, room for further gains 
FxWirePro: AUD/USD firms slightly, but downward resumption looks likely 
EURGBP minor trend was grinding lower until 9th December, but a ‘Dragonfly doji’ counters at 0.8411 levels that has taken-off the rallies above 7 & 21-DMAs. Minor trend which is mildly bullish can extend further upon bullish MACD & DMA crossovers.
While both leading oscillators indicates buying momentum. RSI and Stochastic curves show upward convergence to the current upswings that signal intensified buying momentum.
On a broader perspective, shooting star pattern popped up at 0.9032 levels, and bears resume ever since then to pull back the prices below 0.85 areas (refer monthly chart). You could observe steep price slumps for 5thstraight months in a row. As a result, the major trend now is on the verge of 2 and a half years’ lows.
The prices remain under pressure in the major trend after the break of 0.8475 support, but divergence in our intra-day studies are still giving a stronger warning of a correction phase. Resistance in this regard lies in the 0.8450-0.8490 region with a move through there suggesting a broader recovery back to 0.8560-0.8580. Above that upper resistance would be a short-term game change and suggest a broader move back towards 0.8800-0.9000 resistance.
Overall though, current price action continues to support our longer-term outlook that an eventual break lower out of the 3-year contracting range between 0.8250 and 0.9300-0.9415 levels.
Trade tips: On trading perspective, at spot reference: 0.8445 levels, contemplating above explained technical rationale, it is advisable to trade tunnel spread option strategy using upper strikes at 0.8460 levels and the lower strikes at 0.8424 levels, the strategy is likely to fetch leveraged yields as long as underlying spot FX keeps dipping towards lower strikes but remains above that level on the expiration.
Alternatively, ahead of ECB’s monetary policy and UK parliamentary elections, on hedging grounds we advocated initiating directional hedges that comprised of longs in EURGBP futures of December’19 delivery, simultaneously, shorts in futures contracts of January’2020 deliveries.
