EUR/AUD breaks again 1.5269 - Stay short in near month futures
The pair has broken major supports 1st at 1.5496 and then at 1.5269 levels after the formation of shooting star at 1.5923 on weekly plotting.
Amid this bearish journey we see 21DMA has crossed over 7DMA on daily chart and it is dragging towards next support at 1.5103 levels, we think bears taking absolute control from here onwards as there is no signs of strong buying indications from both leading and lagging indicators.
Both leading oscillators converging downwards to these price dips:
RSI: Currently, RSI (14) on both daily and weekly charts, converging downwards to the prevailing price dips.
Stochastic: This leading oscillator is approaching oversold territory with %D crossover to signal bears are in absolute control. Daily stochs still evidences %D crossover even below oversold zones, while on weekly chart %D crossover at 65 levels conforms to these price dips with intensified selling momentum.
MACD also signifies the ongoing downtrend to prolong further.
Hence, we would foresee euro on weaker side on the back of last week's poor German IFO business climate at -105.7 which is a decline from previous 107.3. So, it is foreseen that pair to slip towards 1.5105 levels shortly.
So, the trading recommendation would be good to go short in near march 2016 futures contracts fior a targets upto 1.5103. The short futures position is also used by a traders to lock in a trading price of a FX that he is going to sell in the future.
Please be noted that as the expiry period approaches, the futures price converges to the spot FX of EURAUD.
To initiate this short position margin requirement is needed, Initial Margin % would be the % of amount required to trade in any futures contract. Lesser the volatility of the pair, lesser is the initial margin and higher the leverage benefit and vice-versa.
Here ATM volatility of the pair is flashing at 14.95% and implied volatility of ATM contracts of 1M expiries are at 15.11%, you may have to spare aside higher margins to initiate this short position.
Amid this bearish journey we see 21DMA has crossed over 7DMA on daily chart and it is dragging towards next support at 1.5103 levels, we think bears taking absolute control from here onwards as there is no signs of strong buying indications from both leading and lagging indicators.
Both leading oscillators converging downwards to these price dips:
RSI: Currently, RSI (14) on both daily and weekly charts, converging downwards to the prevailing price dips.
Stochastic: This leading oscillator is approaching oversold territory with %D crossover to signal bears are in absolute control. Daily stochs still evidences %D crossover even below oversold zones, while on weekly chart %D crossover at 65 levels conforms to these price dips with intensified selling momentum.
MACD also signifies the ongoing downtrend to prolong further.
Hence, we would foresee euro on weaker side on the back of last week's poor German IFO business climate at -105.7 which is a decline from previous 107.3. So, it is foreseen that pair to slip towards 1.5105 levels shortly.
So, the trading recommendation would be good to go short in near march 2016 futures contracts fior a targets upto 1.5103. The short futures position is also used by a traders to lock in a trading price of a FX that he is going to sell in the future.
Please be noted that as the expiry period approaches, the futures price converges to the spot FX of EURAUD.
To initiate this short position margin requirement is needed, Initial Margin % would be the % of amount required to trade in any futures contract. Lesser the volatility of the pair, lesser is the initial margin and higher the leverage benefit and vice-versa.
Here ATM volatility of the pair is flashing at 14.95% and implied volatility of ATM contracts of 1M expiries are at 15.11%, you may have to spare aside higher margins to initiate this short position.
