Chart and candlestick pattern formed – Shooting star, spinning top and gravestone doji pattern candles have occurred at stiff resistance levels of 133.087. Bulls shrugging off these bearish patterns as both the leading oscillator's signal healthy momentum (refer daily plotting).
While intraday bull swings spike through rising channel pattern, Shooting star & hanging man pop up at this channel resistance.
For now, rallies are hovering at 7EMA, both leading oscillators indicate overbought pressures (refer 4H chart).
Bulls in the major trend cushioned at 21-EMAs and bouncing back, hanging man followed by bearish engulfing patterns hamper sustenance above 61.8% Fibonacci retracements (monthly plotting).
Both leading indicators on this timeframe signal overbought pressures, the consolidation phase heading again towards 61.8% Fibonacci retracements
The major stiff resistance levels are observed at 133.087 and 134.475, Break-out above and sustenance of these stiff resistances likely to drag rallies on bullish DMA & MACD crossovers.
The major supports are observed at 132.424, 131.4310 and 129.828 levels, the break below these levels would resume the bearish swings.
Trade tips: On trading perspective, at spot reference: 133.208 levels, it is advisable to buy boundary binaries using upper strikes at 133.486 and lower strikes at 132.7957 levels, the strategy is likely to fetch leveraged yields as long as underlying spot FX remains between these two strikes before the binary expiry duration.
Alternatively, deploy shorts in futures contracts of mid-month tenors with a view to arresting potential dips.
Currency Strength Index: FxWirePro's hourly EUR spot index is flashing at -32 levels (which is bearish), while hourly JPY spot index was at -101 (bearish) while articulating at 06:20 GMT. For more details on the index, please refer below weblink:
http://www.fxwirepro.com/currencyindex
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