You can figure out from the monthly chart that the attempts of recovery has been showing weakness at 85.646 to drop below 21 &7 MA curves as the strong supply seen at this level for this pair.
However, leading oscillators on , began showing divergence with the previous upswings; we believe this as bears are getting active again. is currently trending at around 60.1006 that has hampered the momentum in rallies.
In addition to that, curves boiling up selling up at 80s which is overbought pressures but there is no clear crossover.
Thus, any breach of the above stated would determine the direction of next uptrend but little bias towards south.
Trade tips: Option Tunnel Spread
No surprise if it hits 84 levels near term or 85.645 on north in intraday terms, and 81.345 zones sooner or later.
But for intraday terms, we rely on and and as they pop up with overbought pressures thus far, so smart way to approach this pair is to deploy the option tunnel using ATM puts is structured as a binary version of a conventional put spread, i.e. long delta puts with higher strikes while writing the lower strikes for above mentioned targets on either side.
Therefore an In-The-Money tunnel would be formed of an In-the-money -0.75 delta put below the current exchange rate less an Out-Of-The-Money put above the exchange rate. The delta of -0.55 on combined position with slightly negative theta is preferred on this execution.