Bulls in the dollar have tested resistance at 1.3145 levels when the short term trend is oscillating within sideways from last fortnight or so (see rectangular area).
It seems that USD taking a halt from its intermediary Bull Run against CAD cushioned crude oil price consolidation which has begun especially after last week’s inventory check and OPEC meeting.
On a broader perspective, the pair has dipped from the highs of 1.4689 levels to the recent lows of 1.2460 and currently hovering at 1.2957 levels, it’s been tumbling in this range from last 6 months, so what do you interpret from this price behaviour?
But for now, on we could foresee the pair to drag slumps to retest the supports up to 1.2905 levels for sure, intraday charts still pass on some sort of momentum but we advise use any abrupt rallies for near-term shorts.
Both leading oscillators signal selling pressures, as (14) evidences a convergence with the dipping price spikes from an overbought zone, currently trending downwards below 60 levels, so we believe there has been a sensation on this pair.
While clear crossover on from an overbought zone on signals selling momentum.
However, for a long-run uptrend reversal is still conditional upon breach of stiff resistance at 1.3070 levels. Well, for now, it would be conducive for bears with selling momentum offered by leading oscillators. Thus, it wise to trade in boundary binaries (BB) with higher strikes at 1.3001 and lower strikes at 1.2905, the trading range offers about 50 pips on either side at current spot reference 1.2957.