patterns formed- Railroad and patterns occurred at $1276.41 and $1277.71 levels (on daily plotting) and railroad patterns have occurred at 1279.72 and 1280.04 levels respectively (on monthly plotting).
These patterns are coupled with the fact that the major trend has been in the downtrend that has now gone into the consolidation phase, we foresee less likely to spike any further as it senses stiff resistance levels at $1,381.03 and evidenced failure swings in the recent past. Thereby, more downside potential is foreseen.
Please be noted that the trend has been drifting into non-directional mode after failure swings at the stiff resistance of $1294.61 levels.
Well, for now, the supports in intermediate trend are observed at $1284.74 (i.e. 7DMA levels), any breach below these levels would likely to evidence the uptrend reversal.
On the flip side, break-out and a decisive sustenance above the stiff resistance 1294 levels would likely expand uptrend.
On a broader perspective, the prices have now taken a strong support at 7EMA levels to counter last two months price drops (refer monthly chart).
The sustenance above these levels is crucial and closely watched, as the pair has previously shown a fake dip sensing failure swings.
Contemplating above technical rationale, on trading perspective, it is advisable to buy one touch binary call options, the strategy is likely to fetch leveraged yields as long as underlying spot keeps flying on or before the binary expiry duration.
Alternatively, as the minor trend seems to be inching higher, we advocate bidding longs in the contracts of mid-month tenors to mitigate upside risks.