The broke above 0.7700 on the FBI news but again struggling to clear 0.7725 and slid below 0.77, it may target 0.7735-0.7780 area next (10 Aug peak) in the days to come.
After AUDUSD bulls taking support at 0.7586 levels, we’ve seen a clear bounce back above DMAs and strong resistance at 0.77 levels, momentum for the day is not visible as the pair is testing one more important resistance at 0.7725 levels.
Although the break-out of resistance at 0.7700, rallies rejected again next immediate resistance at 0.7725 mark.
On a bigger picture, despite the major downtrend, the bulls have managed to bounce back since last October but for now, the major resistance is at around 0.7725 mark, any break out above and its sustenance would provide momentum.
On the contrary, we’ve been seeing from the last couple of months the consolidation pattern struggling at the same juncture (i.e. channel resistance), the major trend has been sliding in the sloping channel, for now, the short-term bears linger around sloping channel resistance.
and on daily terms have been decisive for ongoing upswings but noise with strong momentum to signal buying interests on monthly charts as they are converging to the ongoing upswings. on monthly terms signal upswings may prolong.
Fundamentally, Reserve Bank of Australia deferred easing decision and last week’s Aussie trade balance and retail sales were in line with the projections. This week has been quite in the region on the data front.
Consequently, we could foresee the upside potential which means maximum upward travel of another 70-80 pips can be possible.
Hence, intraday and short-term speculators can eye on targets but with a safer approach of trading using double touch binary options.
Well, on intraday speculative grounds, one can use this strategy who believes the price of an underlying asset would undergo a large price movement, but who are the skeptic of the direction.
A trader can use a double touch option with barriers at 0.7780 and 0.7671 to capitalize on this outlook.
Some traders view this type of exotic option as being like a straddle position since the trader stands to benefit on a calculated price movement up or down in both scenarios.
In this case, the trader stands to make a profit if the rate moves beyond either of these levels before expiry, and he/she stands to lose the premium if the rate remains within these barriers.