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FxWirePro: EUR/CHF consolidation phase retraces more than 61.8% fibos, but channel support breach, long-legged doji, and shooting star indicate weakness

EURCHF minor trend that was spiking through rising channel which is bullish in nature, but for now, traders are sensing more selling sentiments as the bears manage to breach below channel support and the current prices have slid below 7DMAs. Most noticeably, the long-legged doji patterns have occurred consecutively at 1.1709 and 1.1708 levels to indicate weakness.

On the contrary, in major trend, with hardly 200 pips away from the current levels, bulls have been lingering in the major trend to hit a fresh 3-years high again after the last 3 months’ momentary bearish effects (refer monthly terms).

Amidst this upside travel, bulls manage to break out the long lasting range, thereby, we foresee more upside traction in the weeks to come.

The major uptrend prolongs upside traction after break-out of range resistance & 61.8% Fibonacci retracements, but shooting star counters at 1.1553 levels, both leading oscillators signal overbought pressures on this timeframe.

Most importantly, both RSI and stochastic curves are indecisive to the current uptrend on monthly terms.

RSI shows tinted curve in the prevailing upswings at 63 levels on both daily and monthly terms that indicate the faded strength in the buying sentiments. While stochastic curves also evidence the same.

Well, at spot reference: 1.1682 levels, on intraday terms, as both stochastic and RSI noise with strong momentum in selling interests as they are converging to the ongoing price dips, we advocate tunnel binary options spreads using upper strikes of 20-25 pips northwards and 40-50 on southwards. 

Alternatively, it is wise to use dips to deploy long hedges using forward contracts, we advocate adding longs in mid-month futures with a view to arresting upside risks.

Currency Strength Index: FxWirePro's hourly EUR spot index is inching towards -64 levels (which is bearish), while hourly CHF spot index was at a tad below 41 (bullish) while articulating (at 10:41 GMT). For more details on the index, please refer below weblink:

http://www.fxwirepro.com/currencyindex.

FxWirePro launches Absolute Return Managed Program. For more details, visit: 

http://www.fxwirepro.com/invest

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