FxWirePro: Speculate EUR/AUD upswings with tunnel construction

EURAUD has been a massive speculative market offering chances of shorts as well as longs and the pair is currently lingering near 1.5036 that was unable at 1.5276 levels to hold four months highs. We remain biased for a gradual move to those lows, with technical resistance at 1.5276 levels (i.e highs of this week).

Intraday swings were quite bullish bias and this is substantiated by leading oscillators RSI and slow stochastic for today showing convergence to the spiking prices. Currently, RSI (14) is trending at 51.1028 converging rising prices, while %D line oscillates at 28.8865 and %K line at 42.8807.

After an intermediate downtrend in last to last week, bulls are back on track to form an engulfing bullish candle with long real body at 1.5062 levels to signify bullish turn because prices hesitated their move downward by increasing significantly during the week. We waited for more clarity by leading oscillators but they suggested indecision on weekly charts. 

The Tunnel using ATM calls is structured as a binary version of a conventional call spreads, i.e. long delta calls with lower strikes (i.e ITM calls) while writing the higher strikes (i.e. OTM calls) for a target of 25-30 pips. Therefore an In-The-Money tunnel would be formed of an In-the-money 0.55 delta calls above the current exchange rate, add an Out-Of-The-Money calls above the exchange rate.