It is quite puzzling if you want to understand the technical intricacies of this pair, (to be precise in simple terms, this pair may dip a little in short term but long term uptrend still remains intact).
In a steep up channel, 7 & 21DMAs holding stronger supports, it has now dropped below resistance at 0.8093 levels (upper BB and 61.8% fibos).
Buying momentum is faded away as RSI & Stochastic on daily charts diverge in overbought zones.
RSI and Stochastic on monthly has been converging to the price rallies.
Hence, price testing 10-months highs of 0.8117 levels (61.8% Fibonacci levels) are now showing some corrections is quite acceptable.
Corrections below 61.8% fibo but more potential in this uptrend can be seen upon sustenance above resistance the same levels, technical indicators signal no harm for bullish momentum.
This pattern appeared with clear bullish convergence from the leading oscillators, the current prices spike above EMA curves but dropped below 7DMA.
Hence, we would to maintain our long term bullish view on this pair as it is likley to test support at 21DMA levels.
However, for intraday speculators the boundary binary options are recommended.
ITM strikes – 0.8020; OTM strikes – 0.7975.
The trading between these strikes would derive certain yields and these yields are exponential from spot FX.
Using binaries, the trader has the opportunity to speculate if an asset’s price will stay within a confined price range for a certain period of time. Please be noted that this is exclusively on speculative grounds, should not be rolled over.
Keeping this trend in mind we reckon, irrespective of the swings boundary binary options would fetch certain yields using the above boundaries in the binary strategy.
The material has been provided by InstaForex Company – www.instaforex.com