FxWirePro: EUR/AUD bulls in consolidation phase breach channel resistance but gravestone doji and shooting star restrain upswings

Ever since the pair tested strong supports in the falling wedge baseline at 1.3683 levels, historically, it has shown sharp spikes after this level in 2015.

When the pair tumbled from the 2015 peaks of 1.6585 to the current 1.3890 levels, you could very well observe that the price behavior has been in the form of falling wedge pattern.

As the bullish swings spike above EMAs with considerable momentum indication from leading oscillators, we see a caution for the major downtrend.

While both leading and lagging oscillators on monthly charts indicates bullish momentum by converging upwards to the ongoing price upswings.

RSI: Currently, RSI (14) on monthly has been clearly converging upwards to the prevailing price spikes that signal the strength in buying sentiments.

Stochastic: Same has been the case on monthly terms but this leading oscillator has approached overbought territory and attempting to evidence %d crossover to signal selling interests on the daily timeframe.

In contrast, we trace out gravestone doji & shooting star occurred at peaks of 1.4822 and 1.4808 levels.

MACD evidences bearish crossover at zero levels on monthly plotting that signal bearish trend to prolong further.

Expect downswings on the bearish candlestick pattern occurrence with leading oscillators in overbought zone tend to signal bearish momentum.

Having said that, overall the major trend gains buying traction but restrained at 1.4906 levels, more rallies are likely only beyond the breach of this level.

Trading tips:

Contemplating above daily bullish sentiment, on trading perspective, it is advisable to buy boundary binaries on dips upper strikes at 1.4906 and lower strikes at 4.4748 levels; the strategy is likely to fetch leveraged yields as long as underlying spot FX remains within these strikes on or before the binary expiry duration.