As shown in the intraday charts, the pair forms with peak 1 at 0.9665, peak 2 at 0.9679 and neckline at 0.9599.
The candles have been flooding from yesterday as a result of “Gravestone and Spinning Top” occurred at 0.9651 and 0.9661 respectively.
The oscillator signals clear selling continuation as there exists a clear downward convergence with the steep declining prices.
While strong selling pressure is on that is signaled by slow curve as %D line crossover has been maintaining even near 20 levels which is an oversold region.
We reckon that current spot FX slid below 10DMA that would drag more slumps up to 0.9599 and if it breaches of this level may expose 0.9565 or even 0.9452 areas can also not be disregarded.
Trade recommendation: On speculation basis we recommend buying one touch binary vega puts in order to derive maximum leverage benefits. By employing these ATM binary vega puts one can multiply the returns by twice, thrice or even pour returns unimaginably. But do remember this call is strictly on speculative grounds.
The prime merits of such one touch option spreads are high yields during high plays, so one can use spreads as well when IV picks up during US sessions.
Wider spreads indicates lack of liquidity. The spreads for one touch AUD/CAD options are constant time and barrier levels.
Usually, such binary options for every change in 1 pip the relative change in option price 0.01% or even exponential at high implied times.