Shooting star pattern has occurred at 110.220 levels last week. Upswings have shrugged off despite this shooting star occurrence, the bulls gain traction with healthy momentum, and the current prices are well above 21DMAs, more rallies likely as 7DMA crosses over 21DMA which is a bullish DMA crossover.
For short term traders, next stiff resistance is observed at 111.929 levels.
On a broader perspective, after rejection at around stiff resistance of 23.6% fibos, shooting stars & gravestone doji signal weakness. The current prices are still below EMAs despite ongoing rallies, the bullish sentiments for this month are not backed by momentum & trend indicators.
The massive volumes formation during course of the bearish rout are to substantiate the major trend.
Momentum analysis: Stochastic curves on monthly terms have been indecisive that indicates no momentum for the upswings seen in this month and RSI indicates strength in the downtrend.
Trend analysis: Lagging indicators (MACD, 7 & 21 EMAs) have also been indicating indecisiveness while prices attempt to bounce.
Trading tips: Contemplating above technical rationale, we advocate buying one touch binary call option to participate in the short term bullish trend, this strategy is likely to add magnifying effects to the yields.
Currency Strength Index: FxWirePro's hourly USD spot index has shown -58 (which is bearish), while hourly JPY spot index was at -132 (bearish) at 06:54 GMT. For more details on the index, please refer below weblink:
http://www.fxwirepro.com/currencyindex.
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