Short-term trend analysis:
Short term downtrend drifts through falling wedge
Every upswing is restrained below 21DMA and channel resistance, for now, the current prices goes non-directional but with little potential on downside
Strong supports are seen at 1.4741 and stiff resistance is seen at 1.4780 levels
The current prices slid well below SMAs (refer 4H chart).
Long-term trend analysis:
Major trend stuck in non-direction, but spikes in rising channel pattern
Hammers pops up at every channel base to prop up rallies & shooting stars at every channel resistance to plummet prices,
The current prices on broader perspective are hovering at 7EMA, leading oscillators signal overbought pressures (refer monthly chart).
For the daily trading, contemplating above technical rationale, tunnel spreads are best suitable. So, snap the rallies to deploy higher strikes at 1.4780 in the binary puts, while shorting lower strikes at 1.4741 levels simultaneously.
Alternatively, at this juncture, on hedging grounds, we recommend shorting mid-month month futures as the underlying spot FX likely to target towards 1.4406 levels in the medium run.
Writers in a futures contract are expected to maintain margins in order to open and maintain a short futures position.
Currency Strength Index: FxWirePro's hourly EUR spot index is inching towards 64 levels (which is bullish), while hourly CAD spot index was at shy above 29 (mildly bullish) while articulating (at 10:12 GMT). For more details on the index, please refer below weblink:
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