On , the failure swings have gone in whipsaws, bounce above may resume rallies up to max.1.4833, and any breach below 1.4794 can pull back slumps up to 1.4752.
Both leading and lagging indicators indicate momentum by converging downwards to these price dips on monthly charts.
RSI: Currently, (14) on daily could be a deceptive indication and clearly converging downwards to the prevailing price dips on monthly signals selling pressures.
Stochastic: This leading oscillator has approached overbought territory but no convincing crossover. Monthly stochs still evidence %D crossover near oversold zones that conforms to these price dips with intensified selling momentum.
On broader perspectives, the pair has been tumbling to break major supports 1st at 1.5496, secondly at 1.5269, thirdly at 1.5060 and now at 1.4855 levels ever since the formation of this pattern on monthly charts.
Robust build ups are conformity to these downswings.
Amid this journey we see the current price have slid below 7DMA on the and it is struggling to break 1.4794 levels convincingly even though it shows strength at this juncture there’s no buying interest either.
We think, in a long term bears' intensity is strengthening as there is no sign of strong buying sentiments so far. Monthly also signifies the ongoing downtrend to prolong further.
So, the trading recommendation would be good to go short via one touch binary puts when pair struggles above 1.4659 levels (7DMA), it is good to go with these options at every rally and bring in leveraging effect with OTM strikes for a minimum target of 30-35 pips with ease.
The payoffs of touch option have been conditional, if EURAUD , in this case, would touch the OTM strike price within any time period by the time of expiration, if the investor predicts correctly and the asset touches the strike price the option expires "in the money".