After testing supports at 0.7439 levels, bulls have been consistently gaining in its price.
The current prices have jumped above 7 and 21 DMAs, while 7DMA crosses over 21DMA.
Consequently, we could foresee the upside potential up to the next strong resistance at 0.7698 and 0.7719 marks, which means considering the prevailing sentiments the upward travel can still be possible as we see the buying momentum is clear from both leading and lagging oscillators.
On the contrary, the major downtrend has been sliding through the sloping channel, restrain below 21EMA and channel resistance.
The current prices on monthly charts have now reached channel resistance (see monthly charts), and the pair at this juncture has been failing quite often to reject at channel resistance.
Well, the puzzling question, for now, is that, can the prevailing upswings break & sustain above channel resistance?
Yes, the answer lies within; we think if it doesn't manage to break above decisively on a closing basis which would likely to resume potential in the days to come.
Well, on intraday terms, the trade strategy would be the boundary binary options by using cash-or-nothing options for targets around 30-35 pips.
Upper strikes –0.7698; lower strikes around 20 pips below 0.7660 levels.
The trading between these strikes likely to derive certain yields in this puzzling trend and more importantly these yields are exponential from spot FX.
For cash or nothing, these options would be exercised as long as the forward prices remain between both strikes (i.e. 0.7698 > Fwd price > 0.7660).