FxWirePro: EUR/CHF rallies to extend but don’t get bull trapped, shooting star to resume sideway trend – Digital call for trading & futures to hedge

On daily charts, despite the upswings in the last couple of days, we traced out shooting star candle which is the bearish pattern at 1.0695 levels after testing resistance that has evidenced the weakness in the recent past, it is likely to sense the weakness at the similar levels again.

Please also be noted that the major trend has been non-directional with range highs of 1.1199 and range lows of 1.0293 levels.

Notably, the every attempt of upswings have constantly been hindered below 21EMAs on weekly terms as well, bears breaking major supports with bearish DMA crossover, current prices have gone below DMAs.

The important resistance range is between 1.0730-1.0750 levels, any breach above these levels and sustenance is only viewed as a safe buying opportunity, else bears are most likely to resume remaining in this range.

RSI: Bullish convergence but likely to sense weakness at 63 levels on dailies, but evidences upward convergence on weekly terms.

Stochastics: Approaching overbought territory on dailies and has been indecisive on weekly terms.

MACD: This lagging indicator has been absolutely indecisive which would imply that the non-directional trend likely to persist.

For the daily trading, one touch binary calls are best suitable capitalizing on intraday bullish momentum to add on the leverage factor on yields. Conversely, on hedging grounds snap the rallies to deploy shorting near-month month futures as the underlying spot FX likely to sense bearish risks.

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