For now, the current prices well below DMAs, DMA crossover signals extension of dips, don't expect sharp rallies before a decisive breach above stiff resistance of 0.7626 levels.
A cautious near-term bottom formed at 0.7532 levels (recent lows on 21st Nov), with upside potential for 0.7625 (above stated stiff resistance) if risk sentiment remains elevated or the US dollar slips further.
Please observe at the same juncture, the price behavior has shown a in the recent history.
On a broader perspective, the bulls managed to break-out channel & range resistance in the months ago, but has popped up again at 0.7828 levels to counter this move (refer monthly chart). Consequently, the major downtrend has resumed that’s gone back in the same range again by evidencing slumps.
Near-term momentum has gone in bears’ favor, same has been the case in the major trend that is converging downwards to signal more slumps on cards in the months to come, both and curves on monthly plotting indicate selling interests.
Well, overall one could bet on prevailing dips, thus, we reckon that it is wise snap rallies to bid tunnel spreads options strategy to speculate this pair for leveraged yields using upper strikes at 0.7569 and 0.7530 levels, the strategy is likely to fetch leveraged yields as long as underlying spot FX keeps dipping below upper strikes before the binary expiry duration.
Alternatively, at spot reference: 0.7533, contemplating lingering indications, on hedging grounds we recommend shorting near-month month as the underlying spot FX likely to target southwards in near run.
Writers in a contract are expected to maintain margins in order to open and maintain a short position.
Currency Strength Index: FxWirePro's hourly AUD spot index is flashing at -81 levels (which is ), while hourly USD spot index was at 139 ( ) while articulating at 06:39 GMT .