EUR/AUD breaks supports at 1.5269, short for targets of 70 pips
After the formation of shooting star at 1.5923 it has been breaking significant supports at 1.5670, 1.5496 and recently it has broken 1.5269 yesterday on a closing basis, at this juncture we see 21DMA has just crossed over 7DMA on daily time frame which is a sell signal, we think bears taking absolute control from here onwards.
Both leading oscillators converging downwards to these price dips.
RSI: Currently, RSI (14) trending near 37.8740 levels conforms to these price dips to signify the intensifying selling momentum.
Stochastic: This leading oscillator is approaching oversold territory with %D crossover to signal bears are in absolute control (current %D line flashes at 11.6111).
Hence, we would foresee euro on weaker side on the back of today's poor German IFO business climate at -105.7 which is a decline from previous 107.3. So, it is foreseen that pair to slip towards 1.5105 levels shortly.
So, the trading recommendation would be good to buy binary puts on every rally for targets at 20-25 pips.
Both leading oscillators converging downwards to these price dips.
RSI: Currently, RSI (14) trending near 37.8740 levels conforms to these price dips to signify the intensifying selling momentum.
Stochastic: This leading oscillator is approaching oversold territory with %D crossover to signal bears are in absolute control (current %D line flashes at 11.6111).
Hence, we would foresee euro on weaker side on the back of today's poor German IFO business climate at -105.7 which is a decline from previous 107.3. So, it is foreseen that pair to slip towards 1.5105 levels shortly.
So, the trading recommendation would be good to buy binary puts on every rally for targets at 20-25 pips.
