On daily charts, the failure swings are now going in sideways but bearish bias, bounce above 7DMA may resume rallies max. up to 1.4425 or 1.4544 levels, and sustenance below can pull back slumps up to 1.4180 levels.
Downswings consistently slid below 7DMA after shooting star formation.
Failure swings considering 7DMA as resistance to evidence more slumps in the days come.
Both leading and lagging indicators indicates bearish momentum by converging downwards to these price dips on daily as well as on monthly charts.
RSI: Currently, RSI (14) on daily could be a deceptive indication and clearly converging downwards to the prevailing price dips on monthly signals selling pressures.
Stochastic: This leading oscillator has approached overbought territory but no convincing bearish crossover. Monthly stochs still evidence %D crossover near oversold zones that conforms to these price dips with intensified selling momentum.
On broader perspectives, the pair has been tumbling to break major supports on monthly charts. Watch out for more downswings upto 1.4072 (i.e. 50% fibonacci retracements) after breach of 38.2% fibos.
Robust volume build ups are conformity to these downswings.
We think, in a long term bears' intensity is strengthening as there is no sign of strong buying sentiments so far. Monthly MACD also signifies the ongoing downtrend to prolong further.
So, the trading recommendation would be good to go short via one touch binary puts when pair struggles above 1.4320 levels (7DMA), it is good to go with these options at every rally and bring in leveraging effect with OTM strikes for a minimum target of 30-35 pips with ease.
The payoffs of touch option has been conditional, if EURAUD in this case would touch the OTM strike price within any time period by the time of expiration, if the investor predicts correctly and the asset touches the strike price the option expires "in the money".


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