With just 350-375 pips away from the current levels of EURCHF , bulls have been stimulated to hit 3-years highs after the formation of a stern pattern candle at 1.1656 levels on daily and 1.1442 levels on monthly terms.
Amidst this upside travel, bulls manage to break out the long lasting range, thereby, we foresee more upside traction in the weeks to come.
Before this, bulls are activated to bounce above DMAs ever since the occurrence of pattern at 1.1433 levels. The current prices remain well above DMAs, and the upswings are backed by both leading & lagging indicators.
shows upward convergence to the upswings that indicate the strength in ongoing rallies. While curves also evidences the upward convergence even in the overbought territory. Same has been the case even on the monthly terms.
To substantiate this stance, both DMAs, as well as EMAs, shows the crossover, while also signals an extension of the uptrend.
Well, on intraday terms, as both and noise with strong momentum in buying interests as they are converging to the ongoing upswings, we advocate staying long via one touch binary call options for a target of 40-50 pips. The rationale for this trade is that when the anticipated trade turns out to be true and if the spot FX earns 1x yields, this binary option likely to fetch magnified impact on yields. Let’s say 5x yields.
Currency Strength Index: FxWirePro's hourly EUR spot index is inching towards 56 levels (which is ), while hourly CHF spot index was a tad below 10 (neutral) at the time of articulating (at 09:12 GMT ).