EURUSD minor trend forms rising channel pattern. Gravestone doji, long-legged doji and shooting star patterns have occurred at 1.2443, 1.2449 and 1.2430 levels respectively.
The price behavior has been highly turbulent today, bears have dragged the slumps from yesterday’s close at 1.2408 to tumble upto 1.2376 levels. While the downswings cushioned by channel supports but not by technical indicators, for now, more slumps on cards only upon breach below this channel supports as shooting star appeared at the stiff resistance of 1.2408 levels signals weakness in this pair.
So far, the trend continues to be weaker as upswings restrained below 7DMAs and the stiff resistance at 1.2413 levels, while both leading oscillators (RSI and stochastic curves) converge downwards to the ongoing price dips.
The trend indicators to substantiate this bearish stance.
Just to recollect, we had already raised the cause of attention that the trend indicators (DMA and MACD) were due to confirm the previous buying sentiment, we now still reiterate that these indicators still evidence bearish crossovers that signal weakness in this pair.
MACD show bearish crossover that indicates downswings to prolong further.
On the broader perspectives, the hanging man and back-to-back shooting star patterns have occurred at 1.2316, 1.2303 and 1.2287 levels respectively to hamper previous bullish momentum (refer weekly plotting).
While leading oscillators (RSI & stochastic curves) indicate the faded strength in the previous mild upswings (weekly plotting).
Hence, at spot reference: 1.2403 levels, contemplating bearish sentiments in minor trend and abrupt upswings on intraday terms, on trading perspective, it is advisable to buy tunnel spread binary options strategy using upper strikes at 1.2413-23 and lower strikes at 1.2376 levels. Thereby, the intraday traders can speculate between upward targets about 20 pips on north and 25-30 pips southwards. The strategy is likely to fetch leveraged yields as long as underlying spot FX keeps dipping but to remain above lower strikes on the binary expiration.
Currency Strength Index: FxWirePro's hourly EUR spot index is displaying shy above 115 levels (which is bullish). While hourly USD spot index was inching towards 36 (mildly bullish) while articulating (at 08:20 GMT).
Just about a week ago we at FxWirePro had spotted out Gravestone doji, long-legged doji and shooting star patterns that are bearish in nature at 1.2443, 1.2449 and 1.2430 levels respectively.
Ever since the occurrences of above-stated bearish patterns, it is observed that almost more than 125 pips of price dips from where we had signaled.