Chart and candlestick formed: EURAUD bulls manage breaking-out range in the minor trend, the pair forms shooting star pattern at 1.5885 levels on the daily chart to signal weakness. Whereas the major trend is still stuck in the long-lasting range.
Breach of the stiff resistance of 1.4906 and 1.5681 levels signals strength in the ongoing rallies.
Consequently, the current prices spike above EMAs with bullish crossovers.
Thereby, the buying sentiments are intensified as the bullish indication is backed by both momentum indicators as well.
Well, from a broader perspective, the break-out of above-stated stiff resistance levels forms new bullish environment. But long-lasting range bounded trend still gives us the skepticism.
Historically, you could make out the prices have tumbled as it failed to sustain above this resistance level and how the price behavior has been upon the occurrence of shooting star and hammer patterns at range resistance.
But for now, most noticeably, the buying sentiments are backed by both momentum & trend indicators on the monthly timeframe.
RSI and stochastic curves have constantly been converging upwards to the ongoing price rallies to indicate the strength and the intensified momentum in the uptrend.
While MACD also substantiates the same, lagging oscillator evidences bullish crossover to indicate the price rallies to prolong further.
Having said that, we conclude by stating, overall, both major and minor trends seem to be in bulls favor but with a little pinch of salt in minor trend.
As a result, contemplating the skepticism, on trading grounds, it is advisable to deploy binary option spreads with upper strikes at 1.5937 and lower strikes at 1.5847 with a view to participating in bearish rallies as well.
Alternatively, at spot reference: 1.5357, contemplating intermediate uptrend, on hedging grounds we recommend adding longs in futures contracts of far-month month tenors.
Holders in a futures contract are expected to maintain margins in order to open and maintain a longs futures position.
Currency Strength Index: FxWirePro's hourly EUR spot index is flashing at 112 (which is highly bullish), while hourly AUD spot index was at 45 (bullish) while articulating (at 11:50 GMT). For more details on the index, please refer below weblink:
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