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 after the formation of this pattern.
Robust build ups are conformity to these downswings.
Amid this journey we see the current price have slide below 21DMA and 7DMA on and it is struggling to break 1.4855 levels convincingly even though it shows strength at minor supports at 1.4750.
We think, in a long term bears' intensity is strengthening as there is no signs of strong buying sentiments so far.
Both leading and lagging indicators indicates 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 oversold territory but no convincing crossover. Monthly stochs still evidence %D crossover at 40 zones that conforms to these price dips with intensified selling momentum.
Daily also signifies the ongoing downtrend to prolong further.
So, the trading recommendation would be good to go short in near march 2016 contracts fior a targets below 1.48 levels with strict stop loss at 1.4959. The short 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 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 contract. Lesser the of the pair, lesser is the initial margin and higher the leverage benefit and vice-versa.
Intraday speculators can eye on one touch binary puts when pair struggles above 1.4855 levels, it is good to buy at every dip and bring in leveraging effect using 'One touch binary puts' with OTM strikes for a minimum targets of 30-35 pips with ease.
The payoffs of touch option has 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".