Bulls have managed to breach and sustain above stiff resistances of 1.2850 levels.
For today, upswings seem to be most likely to extend further upon support at 21DMA, the current prices have gone well above DMAs.
The current price behavior resembles whipsaws pattern at 7DMAs, consequently, contemplating previous rallies price slumps can also be possible upon slide below DMAs or if it doesn’t manage to hold onto strong support at 1.2850 levels.
The sustenance above may drag rallies upto next resistances at 1.3033 levels.
Well on a broader perspective, both leading & lagging oscillators indicates the losing strength in the consolidation phase in the major , where current prices are well below 21EMAs.
The downswings have constantly been sliding testing channel resistance or at 21EMAs, with confirmation from both trend and momentum indicators (refer monthly charts).
Historically, RSI’s downward convergence below 49 levels on monthly terms and curves are still near oversold territory does not signal the strength upswings.
is not deviating from this stance, signals the downtrend to prolong further remaining in trajectory.
Contemplating short term sentiments and major downtrend, at spot reference: 1.2927 we recommend buying boundary binaries with barriers of 1.2987 and 1.2851 levels. The strategy is likely to fetch leveraged yields as long as underlying spot FX remains within these strikes on or before the binary expiry duration.
As we are still in major , contemplating current lingering indications at this juncture, on both hedging and speculative grounds we recommend shorting mid-month month to arrest downside risks.
Writers in a contract are expected to maintain margins in order to open and maintain a short position.