On the , the price behavior in short-term trend has moved in .
Despite the stern begging of this week where bulls’ attempts of bouncing back, the rallies were restrained at 21DMA levels.
The failure swings have propped up bears to plummet the prices below channel support at 1.0857 levels.
As a result, and candle patterns have occurred at 1.0845 and 1.0857 levels respectively, the current prices on this timeframe have gone below DMAs.
Well, considering the broader picture, the downswings have been slipping through sloping channel, every price bounces were rejected at this channel resistance and every dip were supported at baseline.
Bulls, for now, seem to be unlikely to break this resistance & 21DMA, instead, expect more slumps on DMA crossover.
While momentum indicators to substantiate this stance.
points: 1.0857 and 1.0884 levels on northwards and 1.0750 and 1.0686 (21EMA) levels on southwards.
evidences crossover on daily and remains below zero level on monthly terms, so we foresee swings to be prolonged further.
Both leading indicators ( & ) on both time frames are signaling selling sentiments. evidences the downward convergence with the ongoing price dips that signifies the strength of the , (currently, trending below 46 and 63 levels on daily and monthly terms respectively).
While curve at 20 levels which is oversold zone has still been evidencing %D crossover to signal the intensity in daily terms. This leading oscillator has been indecisive on monthly plotting.
Well, having said that we wrap up with concluding note, short-term bulls can speculate this pair whereas long-term investors at current juncture contemplating above indications, we advocate shorting contract of mid-month or near month expiries for target towards 1.0750 and upto 1.0686 levels cannot be ruled out upon breach of the 1st target.
Writers in a contract are expected to maintain margins in order to open and maintain a short position.