On the flip side, the intermediate trend has also been spiking through pattern (refer weekly plotting), a potential pattern has occurred on this timeframe.
Can bulls break-out channel resistance or bears resume on failure swings is the most dubious question for now.
The patterns (shooting stars, failure swings at channel resistance and ) are coupled with the and curves’ downward convergence that signals overbought pressures.
Although mild rallies are observed this week, interests are not backed by momentum indicators that signals continued weakness.
On a broader perspective, the pair has been going through consolidation phase after a massive downtrend, where a potential formation seems to be most likely with top 1 at 0.8125 and top 2 at 0.8135 levels. Although this pattern is in nature, still the major trend goes non-directional (refer weekly plotting).
Both leading oscillators ( & ) have been showing downward convergence, momentum seems to be little edgy for now on weekly terms, hence, ongoing rallies are quite dubious.
Trade tips: Well, on trading perspective, at spot reference: 0.7863, it is advisable to buy boundary binary strategy using upper strikes at 0.7879 and lower strikes at 0.7843 levels, the strategy is likely to fetch leveraged yields as long as underlying spot FX keeps dipping but remain within these strikes on or before the binary expiry duration.
Alternatively, on hedging grounds, we advocate shorting contracts of mid-month tenors as the underlying spot FX likely to target southwards 0.75 levels in the medium run.
Writers in a contract are expected to maintain margins in order to open and maintain a short position.
Currency Strength Index: FxWirePro's hourly AUD spot index is inching towards 57 levels (which is ), while hourly USD spot index was at -11 ( ) while articulating (at 09:36 GMT ).