FxWirepro: BTC/EUR dragonfly doji struggles for momentum, buy minor trend and short hedge

The minor trend of BTCEUR had been oscillating so far in a tight range of 7442.85 and 6325.92 levels.

In the recent past, bulls have managed to break-out this tight range as the current prices spikes above 7 & 21 SMAs.

Both leading (RSI & stochastic curves) and lagging indicators (7&21EMAs and MACD) have been indicating that the strength and uptrend continuation.

While major trend has been tumbling where the bull trend test support at 4753, dragonfly doji occurs at 6629.98 levels.

The current price remains below EMAs despite this bullish pattern evidences price spikes but struggles for momentum rallies restrained at 7EMA.

Although this bullish pattern candle sense some sort of buying interests, but these sentiments are not reliable as the technical indicators have still been in bears’ favor.

RSI on weekly terms shows downward convergence to signal the fading strength in the previous uptrend. Same has been the case with stochastic curves.

Hence, contemplating on both short-term and major trend, we advocate buying BTCEUR in near term, stay short in futures contracts of mid-month tenors with a view to arresting further potential downside risks.

When the tide and wind are moving in opposite directions, the sea is rough and sailing is hard work. The wind is in the euro’s sails, pushing it higher as the economy grows, the ECB edges away from post-GFC policies and the currency’s undervaluation support it.