FxWirePro: EUR/USD edge higher above upper BB but bulls in major trend struggle for momentum – bears bet on boundary binaries

On daily charts, the current prices have gone well above DMAs and now exceeding upper Bollinger band as the hammer & bullish engulfing patterns occurred at 1.0599, 1.0557 and 1.0620 levels respectively.

These candles have shown their bullish effects subsequently in price spikes above 7DMAs, rallies likely to extend further upto next resistance at 1.0766 levels, 7DMA has just crossed over 21DMA which is bullish DMA crossover that is a signal for the extension of bull rallies (refer daily charts).

But on a broader perspective, the major trend still seems weaker, shooting star patterns occurred even at 1.1088 and 1.1575 levels on monthly plotting which is well below 21EMAs.

As the interim bulls seem to have exhausted at 7-EMA (see monthly), we call for more slumps rather than bulls extending rallies upto channel resistance.

EURUSD major trend has been sliding through sloping channel (monthly terms). While last two days the downswings are dragging below 7DMA despite the engulfing pattern that could be deceptive to the aggressive bulls as the momentum is losing in its traction (see daily charts).

Although EURUSD spiked from channel support, it has remained well below and been struggling to bounce further above 21EMA levels on the monthly chart; as a result, the major downtrend still seems to be intact.

RSI on monthly terms indicates convincing strength in declining trend downward with its convergence to the prevailing price declines.

While stochastic curves have been indecisive but bearish bias at oversold zone (on both dailies and monthly terms).

Same has been the case on MACD, this lagging oscillator indicates indecisiveness on both daily and monthly terms but remains bearish biased on both timeframes.

Hence, it is wise to snap rallies to deploy fresh shorts as you see no traces of indications of any robust uptrend for now, instead trace out selling momentum on shorter term charts.

Trade tips:

For intraday trading perspective, it is advisable to buy boundary binaries on dips upper strikes at 1.0750 and lower strikes at 1.0672 which means upward travel maximum upto 40-45 pips and 40-45 on southward targets within the binary expiry duration.