FxWirePro: EUR/USD gap up opening likely to drag rallies but consolidation phase in major bearish trend drifts non-directional

On daily charts, gap up opening is seen at 1.0833 levels to break out a stiff resistance at 1.0810 levels, the sustenance above these levels would drag the rallies upto 1.0950 levels (next immediate resistance levels).

While the current prices have gone well above DMAs and for now, the rallies are extending towards upper Bollinger band.

This bullish occurrence is likely to evidence its bullish effects subsequently in price spikes above 7DMAs, rallies likely to extend further upto next resistance at 1.0950 levels (refer daily charts).

But on a broader perspective, the major trend still goes in non-directional, the consolidation phase in the major downtrend seems to be continued.

But the interim bulls seem likely to test stiff resistance at 21-EMA (see monthly), we call for more slumps rather than bulls extending rallies upto this level. Historically, every attempt of the upswing is restrained at this level.

Although EURUSD spiked from range 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 indicates indecisiveness to the short uptrend that is prevalent on monthly terms.

While stochastic curves have also been indecisive at oversold zone (on monthly terms).

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

Hence, it is wise to snap rallies to deploy fresh shorts as you see no traces of indications of the robust uptrend for now.

Trade tips:

For intraday trading perspective, at spot reference: 1.0844 it is advisable to buy boundary binaries on dips upper strikes at 1.0874 and lower strikes at 1.0824 which means upward travel maximum upto 40-45 pips and 20-30 on southward targets within the binary expiry duration.