The pair has immediate at 7DMA and at 1.4738 levels respectively.
7DMA acting as after long legged , current price behaviour drifts into sideways.
From 3-4 days, selling momentum has been reduced as the bulls are holding stronger supports at 1.4514 levels, however, the remains intact as the both leading and lagging indicators are still favouring environment.
and on daily terms are currently indecisive as they move in sideways.
Intraday sentiments have been sluggish but slightly bias, Moving average curves are puzzling at that juncture.
But, ever since the formation of on monthly charts and break out below 1.4949, the pair has more downside potential, currently at 1.4680 levels hanging at 7EMA.
Leading and lagging indicators have been indicative of weakness in the major trend, volumes are in conformity to the declining trend on monthly charts.
If sideway trend that is stated in above technical indications is shrug off and expect massive movements on either side can initiate below option strategy.
The reverse iron condor is a limited risk and limited profit trading strategy that is designed to earn a profit when the underlying spot FX price makes a sharp move in either direction as we see whipsaws with previous interim trend being , so prices can burst out on either direction.
As a result, we recommend devising this strategy, go long in OTM call and short in deep OTM call, simultaneously go long in OTM put and short deep OTM put at net debit, prefer comparatively shorter expiries on short side and longer tenors on long side.
Maximum gain for the reverse iron condor strategy is limited but significantly higher than the maximum possible loss.
It is attained when the underlying spot FX price drops below the strike price of the short put or rise above or equal to the higher strike price of the short call.
In either situation, maximum profit is equal to the difference in strike between the calls (or puts) minus the net debit taken when initiating the trade.