Chart pattern formed- rising channel and Dragonfly doji appears exactly at channel baseline.
Most noticeably, as and when this pattern occurs, bulls bounce back after testing channel support, current prices have gone above DMAs with bullish crossover. For today, the prices are held strongly and inching higher above DMAs (refer daily chart).
The major supports are observed at 132.6040, 132.016 and 131.415 levels, we don’t think that the bears will be able to break below these levels in near time future because the momentum has been favorable on the bullish side.
On a broader perspective, bull swings in the consolidation phase have gone above 50% Fibonacci retracement levels but restrained below 61.8% (refer monthly plotting), momentum oscillators on this timeframe have been indecisive but pops up overbought pressures, whereas the trend indicators are bulls' favor.
Momentum study: In the short run, as both leading oscillators (RSI & stochastic curves) are converging to the price upswings, the strength and the momentum in this buying sentiments are confirmed. While these indicators are signaling overbought pressures on monthly terms.
Trend indicators: MACD on daily terms has been showing bullish crossover to indicate upswings to prolong further, same has been the case on monthly terms as well, lagging oscillator on both timeframes remains in the bearish territory which means overall major trend would be in the consolidation phase with minor hiccups in the short term trend.
Trade tips: On trading perspective, it is advisable to buy one touch binary calls as the underlying spot FX likely to drag rallies upto the next stiff resistance levels of 134.475, the strategy is likely to fetch leveraged yields as long as underlying spot FX keeps spiking before the binary expiry duration.
Currency Strength Index: FxWirePro's hourly EUR spot index is flashing at -53 levels (which is bearish), while hourly JPY spot index was at -86 (bearish) while articulating at 06:42 GMT. For more details on the index, please refer below weblink:
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