Chart pattern formed- (on daily plotting) and with conflation points at high 1 at 1.7274, low 1 at 1.3881, high 2 1.8555 and low 2 at 1.4534 levels (on monthly plotting).
helps in recognizing the higher probability opportunities to buy, or go "long."
The short-term trend recently tests the channel resistance at 1.7409 levels and shown the failure swings, as a result, the price dropped back a bit and tests support hovering at 7DMAs.
Consequently, price bounces above DMAs are seen today, one could observe rallies are backed by both leading and lagging indicators.
, so far, has been converging upwards along with the price rallies after sensing strength at 47 levels. Historically, it has shown the strength at the same levels.
On a broader perspective, the major trend forms that evidecnes upswings, the current price spikes above EMAs with crossover, the sustenance above will extend rallies.
Both leading & lagging indicators substantiate this environment (refer monthly chart).
7EMA crosses over 21EMA levels which is crossover that indicates the uptrend extension further which is in line with the above stated chart pattern.
Additionally, has also shown crossover which is again a substantiation to prolong the prevailing uptrend (refer monthly plotting).
Contemplating above environment coupled by the momentum oscillators, it is wise to initiate longs in one touch binary call options strategy by giving more space to the upper strikes upto 1.7308, the strategy is likely to fetch leveraged yields as long as underlying spot FX keeps flying northward on or before the binary expiry duration.
Alternatively, as the major trend continues to inch higher, we advocate bidding longs in the contracts of mid-month tenors to mitigate upside risks.
Currency Strength Index: FxWirePro's hourly EUR spot index is displaying shy above 131 levels (highly ), while hourly NZD spot index was inching higher towards -9 (neutral) while articulating (at 09:04 GMT ).