FxWirePro: EUR/CHF major trend sustains above long-lasting range after stern engulfing pattern, bulls inching towards 3-years’ highs – Bid for one-touch binaries

With just 350-375 pips away from the current levels of EURCHF, bulls have been stimulated to hit 3-years highs after the formation of a stern bullish engulfing pattern candle at 1.1656 levels on daily and 1.1442 levels on 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.

Before this, bulls are activated to bounce above DMAs ever since the occurrence of hammer pattern at 1.1433 levels. The current prices remain well above DMAs, and the upswings are backed by both leading & lagging indicators.

RSI shows upward convergence to the upswings that indicate the strength in ongoing rallies. While stochastic curves also evidences the upward convergence even in the overbought territory. Same has been the case even on the monthly terms.

To substantiate this bullish stance, both DMAs, as well as EMAs, shows the bullish crossover, while MACD also signals an extension of the uptrend.

Well, on intraday terms, as both stochastic and RSI noise with strong momentum in buying interests as they are converging to the ongoing upswings, we advocate staying long via one touch binary call options for a target of 40-50 pips.  The rationale for this trade is that when the anticipated trade turns out to be true and if the spot FX earns 1x yields, this binary option likely to fetch magnified impact on yields. Let’s say 5x yields.

Currency Strength Index: FxWirePro's hourly EUR spot index is inching towards 56 levels (which is bullish), while hourly CHF spot index was a tad below 10 (neutral) at the time of articulating (at 09:12 GMT). For more details on the index, please refer below weblink:

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

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