Chart and candlestick patterns formed - Bullish engulfing pattern has occurred at 131.157 levels, consequently, the bullish pattern candlestick evidences rallies above DMAs with healthy momentum and, the stiff resistance is observed at 132.424 levels, the break-out above this stiff resistance and sustenance above is to drag rallies on bullish DMA & MACD crossovers.
The stern bullish engulfing pattern signals strength, while both the leading indicators (RSI and stochastic curves) show upward convergence that signals the strength and healthy bullish momentum.
On the contrary in a broader perspective, although bulls broke-out above 61.8% Fibonacci retracements but couldn't sustain, hanging man & resembling bearish engulfing patterns occur at peaks to plummet prices below EMAs again.
Both leading oscillators (RSI & stochastic curves) on this timeframe signal overbought pressures. Consequently, the current prices are back between 61.8% and 50% Fibonacci levels.
Trade tips: On trading perspective, it is advisable to buy one touch binary call options using strikes at 133.087 levels, the strategy is likely to fetch leveraged yields as long as underlying spot FX keeps rising on the expiration.
Alternatively, deploy shorts in futures contracts of mid-month tenors with a view to arresting bearish risks upto 129.828 or below levels.
Currency Strength Index: FxWirePro's hourly EUR spot index is flashing at 46 levels (which is bullish), while hourly JPY spot index was at -158 (highly bearish) while articulating at 08:00 GMT. For more details on the index, please refer below weblink:
http://www.fxwirepro.com/currencyindex
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