FxWirePro: “Sooner or later AUD/USD bears prop up at channel resistance”, spinning top and gravestone doji hamper bullish momentum

On weekly terms,

Stiff resistance at 0.7761 levels.

Spinning top at 0.7667 and gravestone doji at 0.7666 levels.

Can it be triple top or extension of consolidation phase in major trend?

The pair forms double top with bearish patterns such as shooting star candles at peaks (with top 1 at 0.7835 and top 2 at 0.7778 levels).

Now at around the same resistance level, gravestone doji occurred again on last week’s candlestick pattern, the bearish pattern occurred at 0.7660 level that has indicated the weakness.

Although it looks like the bulls continue to carry previous consolidation phase, shrink in momentum is foreseen at the stiff resistance of 59 levels on RSI, at this juncture, bull swings are hanging on channel resistance and 21EMAs again (refer monthly).

But, stochastic on the other hand, signals bullish momentum even though the other leading oscillator has 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 0.7874 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).

For now, previous month’s bullish engulfing pattern is boosting buying sentiments but the resistance of 0.7747 is closely watched whether bulls manage to breach decisively and sustain above or not.

Hence, considering intraday bear swings and recent consolidation phase, at spot reference: 0.7655 the speculators can eye on below binary options strategy in the range between 140-150 pips.

Trade tips:

Well, as a result of above technical reasoning, on speculative grounds we advise tunnel spreads which are binary versions of the debit put spreads.

This strategy is likely to fetch leveraged yields than spot FX and certain yields keeping upper strikes at 0.7760 and lower strikes at 0.7610 levels.