The short term trend of this pair has been traveling in the sloping channel (refer weekly charts).

Despite the upswings in the last couple of trading sessions, prices for the day is restrained at 1.0873 levels (this week highs and previous week high at 1.0869) after testing channel resistance that evidences the weakness at this juncture again in this pair.

Well, contemplating the momentum for the day, the rallies, for now, may extend upto channel resistance but failure swings to evidence more dips.

The current prices are well above DMAs, while the bears may get active at above-stated levels to plummet prices again (historically, you could observe very well as and when the prices touched channel support it has bounced back and dipped when touched resistance.

On a broader perspective, please be noted that the every attempt of upswings have constantly been hindered below 21EMAs, bears sensing major resistances at this level with MACD remaining in bearish trajectory, while RSI signals fading strength in rallies at 58 levels on monthly terms.

Consequently, it is also spotted out that the downward convergence thereafter between price curve and leading oscillators. Almost same is the case on weekly plotting (fading strength on RSI at 63 levels).

Overall, the non-directional trend likely to persist in major trend but with little weakness is on cards.

For the daily trading, tunnel spreads are best suitable, so snap the rallies to deploy higher strikes in the binary puts while shorting lower strikes simultaneously.

Alternatively, at this juncture, contemplating lingering bearish indications, on hedging grounds we recommend shorting near-month month futures as the underlying spot FX likely to target towards 1.0729 levels in near run.

Writers in a futures contract are expected to maintain margins in order to open and maintain a short futures position.