The uptrend that has been gradually prolonging from last three months has taken one step ahead to break trendline resistance, it looks like the pair has set up a new stage for its bull run as you can make out from strong bull candles with volume confirmation with all leading technical oscillators are positively converging.
Why ratio spread: This is an income strategy. You are looking for a net credit if the stock stays within a range or rises.
Execution: EURAUD is currently trading at 1.5753. Short two lots of next month OTM strike puts.
Buy one deep OTM strike put of the same expiry.
Advantage: This position will be profitable if the EURAUD stays within a range.
Risk/Reward Profile: There is unlimited risk in this position, with capped reward.