FxWirePro: AUD/USD shooting star evidences dips but bulls counter at channel support, major downtrend stuck in range – Boundary binaries to speculate

Shooting star has been traced at 0.7540 levels that has evidenced price dips below SMAs, but bulls have managed to bounce back, holding stronger at channel support of 0.7472 and have managed to bounce back above 7DMA, spike above 0.7517 likely to extend rallies (refer 4H chart).

Healthy bullish momentum ever since prices tested support at 0.7162, current prices spike above 21EMA.

As stated in our previous post, the major downtrend has been sliding through sloping channel but in the recent past it has gone into consolidation pattern (stuck in a range between 0.7747 levels on north &  0.7162 levels on south) but after testing support 0.7162 levels the prevailing upswings may prolong upto channel resistance (refer monthly plotting).

The current price on monthly terms has remained well below 21EMAs.

But for the day, upswings favoured by healthy bullish momentum both RSI and stochastic curves.

Hence, considering intraday bullish momentum and recent bearish occurrence, the speculators can eye on boundary binary options by using cash-or-nothing options for targets around 40-50 pips.

Upper strikes – 0.7539; lower strikes around 40 pips below 0.7488 levels.

The trading between these strikes likely to derive certain yields in this puzzling trend and more importantly these yields are exponential from spot FX.

For cash or nothing, these options would be exercised if the forward prices to remain between both strikes (i.e. 0.7539 > Fwd price > 0.7488).