But we don’t think the prevailing price bounces sustain major resistance or to reach even major resistance at 161.702 and 162.702 levels. One can think of the upswings of this pair on speculation grounds but certainly not on investment grounds in long run.
In the recent past also bears resume quite a lot of times after rejecting major resistances at 162.702 & at 161.702.
& oscillators on weekly charts have been biased but on monthly terms it is absolutely adverse. Leading oscillators ( & ) have been convincingly converging to the major downtrend.
has remained below zero level on weekly which is a territory, and crossover on monthly terms.
On monthly plotting, the downtrend has already shown more than 50% Fibonacci retracements, so any minor spikes should not deemed as a reversals, instead use those rallies to deploy long term shorts.
Massive volumes build ups are in conformity to this declining trend.
To substantiate this major downtrend, MACD's crossover, 21EMA crossover 7EMA and since the current prices on monthly charts have slid below EMAs which is still sell signals.
Contemplating above technical reasoning, we could foresee swings may resume at any point in time although attempts of upswings above 7DMA we could also see stiff resistance at 21DMA.
Hence, at spot ref: 160.744 double touch options are useful for traders who believe the price of an underlying asset will undergo a large price movement, but who are unsure of the direction.
Some traders view this type of exotic option as being like a straddle position, since the trader stands to benefit on a calculated price movement up or down in both scenarios.
A trader can use a double one-touch option with barriers at 157.656 and 162.702 to capitalize on this outlook.
In this case, the trader stands to make a profit if the rate moves beyond either of these levels before expiry, and he/she stands to lose the premium if the rate remains within these barriers.
This will end up putting the trader in a position to gain profit from a boost in the asset price or even a decrease.
Usually, it’s wise to manage both sides of a motion when the asset price is shifting around in a changeable manner.