The 3-black crow pattern has been traced out at 1.0180 levels that evidence price declines below 7 and 21 DMAs so far (refer ).
Amid this journey, bears have managed to break below strong support at 1.0222 levels.
Most importantly, please be noted that both leading oscillators evidence the downward convergence along with the prevailing price dips to signal the strength in the downtrend.
has been converging downwards below 53 levels where it has tested supports historically.
While curves right from overbought zone have also consistently evidenced %D crossover which is a crossover, currently slightly indecisive but bias near 20 levels which is oversold territory.
For now, the extension of these slumps seems more likely after the current prices sliding below DMAs and major supports.
7DMA likely to crosses below 21DMA which is deemed to be a crossover.
While also signals the same with crossover, price dips to prolong further.
On a broader perspective, we could foresee a occurrence at stiff resistance of 1.0225 levels that seems most likely on monthly plotting (just three days to spare to finish with monthly candle), as a result, 3-months’ uptrend momentum shrinking away, failure swings at this likely to drag more slumps.
Hence, we advise staying short in mid-month contracts for the targets of another 150-200 pips but maintain a strict stop loss of 1.0333 levels.