FxWirePro: AUD/CHF bulls inch towards long lasting range resistance, more rallies on cards upon bullish DMA crossover - Double touch binaries to trade

It’s been the 3rd consecutive day that the AUDCHF bulls have managed to break-out stiff resistance of 0.7696 levels. The next immediate resistance is seen at 0.7727 levels.

The current prices have spiked above DMAs, we could foresee more rallies in the near term upon bullish DMA crossover and the sustenance above stiff resistance of 0.7696 marks,

While these upswings are backed by both leading & lagging indicators.

Both RSI and stochastic curves have constantly been converging to the prevailing upswings that signal the strength and the healthy momentum in the ongoing bullish sentiments.

While MACD on this timeframe, has been indecisive but slightly on bulls’ favor, and this lagging oscillator on monthly terms, indicates uptrend prolong further.

On a broader perspective, please observe the price behavior has been traveling in the long lasting range, for now, heading towards range resistance. The current prices have gone well above EMAs with bullish crossover, we now have the perplexing question on this pair - can these bull-swings manage to break-out long lasting range?

Upswings on this timeframe, backed by both leading & lagging indicators.

Well, contemplating above technical reasoning, we could foresee equal chances for both bears and bulls as the trend is approaching a stiff resistance.

Hence, double touch option seems more conducive for intraday traders who believe the price of an underlying asset would undergo a large price movement but who are unsure of the direction ahead of central banks’ monetary policy actions in both continents (SNB is lined up tomorrow for Libor rate announcements, while RBA assistant governor’s speech today and cash rate announcement in October 1st week).

At spot reference: 0.7714, an intraday trader can use a double touch option with barriers at 0.7727 and 0.7696, thereby, one can speculate this pair about 25-30 pips.

Some traders view this type of exotic option as being like a straddle position since the trader stands to benefit from a calculated price movement up or down in both scenarios.

In this case, the trader stands to make a profit if the rate moves beyond either of these levels before expiry, and he/she stands to lose the premium if the rate remains within these barriers.

Currency Strength Index: FxWirePro's hourly AUD spot index is flashing at -17 levels (neutral), while hourly CHF spot index was at shy above -63 (bearish) at 06:34 GMT. For more details on the index, please refer below weblink:

http://www.fxwirepro.com/currencyindex.

FxWirePro launches Absolute Return Managed Program. For more details, visit: 

http://www.fxwirepro.com/invest