While both momentum oscillators ( and curves) show upward convergence to these price rallies to indicate the intensified momentum.
While the major uptrend has been prolonging in the range, but the latest uptrend hit 3-months highs upon the formations of patterns at 0.8635 and 0.8770 levels (refer monthly plotting), both leading & lagging indicators substantiate buying sentiments on this timeframe as well.
Although the pair’s upswing is currently trading in the midst of the current 0.8470-0.8720 range momentarily for the day, the underlying technical outlook remains , but a break of 0.8594 and 0.8470 is needed to confirm and open a move towards the more significant medium-term 0.8350-0.8250 lows.
On the contrary, a rally through 0.8725 would negate that dynamic and suggest a return to the previous upper range, in which resistance is at 0.8840/60 and key resistance remains at 0.9100-0.9170.
On a broader perspective, a decline through key 0.8350-0.8250 range lows is needed to indicate a major shift in sentiment, suggests a move to 0.81 levels.
Trade tips: On trading perspective, at spot reference: 0.8784 levels, contemplating above-explained technical rationale, it is advisable to trade double touch call option strategy using upper strikes at 0.8821 levels, the strategy is likely to fetch leveraged yields as long as underlying spot FX keeps flying towards upper strikes on expiry duration.
Alternatively, on hedging grounds, we advocated initiating directional hedges that comprised of shorts in EURGBP contracts of Apr’19 delivery and simultaneously, long in of June’19 delivery for the major uptrend.
The strategy has acted as per whims and fancies of our predictions, we now wish to uphold long leg of June’19 delivery with a view of arresting further upside risks.
Currency Strength Index: FxWirePro's hourly EUR spot index is inching towards -81 levels (which is ), GBP is at -77 ( ), while articulating (at 10:30 GMT ).