Never get bear-trapped by deceptive EUR/USD’s shooting star : FxWirePro | January 23, 2018

Never get bear-trapped by deceptive EUR/USD’s shooting star , trend likely to wedge in range only – Use DNTs to trade:

The minor trend of EURUSD -0.16% oscillates between range (refer 4H chart in the rectangular area), the current prices have slid below 7SMAs, price dips to drag further upon intensified bearish momentum & MACD crossover.

On a broader perspective, bulls in the major trend spike well above EMAs but the occurrence of shooting stars hamper buying sentiments. But for now, never conclude the signal in an isolation as both leading & lagging indicators signal strength in the uptrend. The technical study should always be substantiated by supportive calls. Thus, we think it is unwise to get bear-trapped by this shooting star .

Whereas the bulls tested supported at 7EMAs to bounce back, for now, the rallies seem to be extending further upon bullish EMA and MACD crossover.

Capitalizing on the long lasting range and shrinking IVs, we foresee this is the right time bid DNTs (Double-No-Touch digital options).

At spot reference: 1.2239 levels, contemplating bearish sentiment on intraday terms, on trading perspective, it is advisable to trade DNT’s: Contemplating both short term and long term technical of this pair, we recommended certain yields but a limited loss structure via double-no-touch optionality in next 1-week, EURUSD -0.16% 1w DNT 0.00% with 1.2299/1.2192 strikes (maintained 50 pips as a tolerance on either side of the range) – short volatility outright given the unquantifiable risk. However, shorting volatility and fading the spike in skew through limited loss structures (i.e. DNT’s) could be appropriate.

Currency Strength Index: FxWirePro's hourly EUR spot index is displaying shy above -77 levels (which is bearish ). While hourly USD spot index was inching towards 26 ( bullish ) while articulating (at 09:03 GMT             ).