EUR/CHF drifts nowhere but in sideways, trade via short strangle
Shorting opportunity for short traders: The pair shown a break below supports at 1.0941 to drift below 7 & 21DMA curves that in turn likely to evidence some weakness.
Leading indicators signal bearish convergence, watch out for more selling momentum than buying interest.
Narrow range creates opportunity for intraday speculators though boundary options.
Upswings after break above resistance are not sustained.
Puzzling time for long term investors: As stated earlier, on weekly plotting, after a brief upswings gravestone doji appeared that has brought back rallies in range very effectively, as a result we now see the slumps dropped in the narrow range trend.
This range has lasted almost for 6 months, but the moment when it breached the above mentioned Gravestone doji pattern is occurred. That is from where it's been drifting down.
The prevailing prices are slid below EMA curves on weekly.
RSI on weekly is currently trending below 51 levels, while %D crossover just a shy above 40s.
But MACD hints the upcoming trend is likely to prolong in the same range like we've been seeing from last 6 months. Long term FX investors may get good hedging arrangements capitalizing on this signal.
Option trading tips: On speculative basis short strangles are the best suitable in prevailing condition of EURCHF as 1W IVs are the least among G20 currency space at 5%, accordingly we recommend shorting 1W (1%) OTM puts as well as 1W (1%) OTM calls for a net credit.
Returns are limited but certain for this strategy that occurs when the EURCHF spot FX on expiration date is trading between the strike prices of the options sold.
Leading indicators signal bearish convergence, watch out for more selling momentum than buying interest.
Narrow range creates opportunity for intraday speculators though boundary options.
Upswings after break above resistance are not sustained.
Puzzling time for long term investors: As stated earlier, on weekly plotting, after a brief upswings gravestone doji appeared that has brought back rallies in range very effectively, as a result we now see the slumps dropped in the narrow range trend.
This range has lasted almost for 6 months, but the moment when it breached the above mentioned Gravestone doji pattern is occurred. That is from where it's been drifting down.
The prevailing prices are slid below EMA curves on weekly.
RSI on weekly is currently trending below 51 levels, while %D crossover just a shy above 40s.
But MACD hints the upcoming trend is likely to prolong in the same range like we've been seeing from last 6 months. Long term FX investors may get good hedging arrangements capitalizing on this signal.
Option trading tips: On speculative basis short strangles are the best suitable in prevailing condition of EURCHF as 1W IVs are the least among G20 currency space at 5%, accordingly we recommend shorting 1W (1%) OTM puts as well as 1W (1%) OTM calls for a net credit.
Returns are limited but certain for this strategy that occurs when the EURCHF spot FX on expiration date is trading between the strike prices of the options sold.
