FxWirePro: Bullish engulfing again but within channel lines on EUR/AUD; option straps for hedging

Technical Glance:

After an intermediate downtrend in last week, bulls are back on track to test channel resistance at 1.5415, so thereby around 200 pips on upside potential is due. On weekly charts this is confirmed by forming an engulfing bullish candles with long real body at 1.5064 and again one more engulfing pattern is likely at 1.5215 levels to signify bullish momentum because RSI is positively converging with these price spikes while stochastic shows %K line crossover below 80 levels which is still a bullish sign. 

Currency Option Strategy:

Since we don't want to buck the trend and the trend remains uptrend the combinations are the most suitable that allow adding both calls and puts at a time in our strategy unlike spreads.

So, Buy 15D At-The-Money delta put option and simultaneously short 2 lots of 15D At-The-Money delta call options.

It involves buying a number of ATM puts and double the number of calls, ATM instruments because of Vega advantages so as to have high chances of more options sensitivity. The strap is more of customized version combination and more bullish version of the common straddle. Hence, any hedger or trader who believes the underlying currency is more likely to surge upside can go for this strategy.