While, the oscillator is a clear downward convergence near overbought territory with the steep declining prices.
While strong signs of selling pressure on slow curve as there is clear %D line crossover above overbought zone.
On , the current spot FX slipping below 21DMA would prolong and bring in more slumps up to 0.9452 areas.
Massive build ups as the price dips began from formation which would mean that selling momentum has been intensified with these rising volumes.
Hence, on a hedging perspective, debit put spreads are advocated as the selling indications are piling up on both weekly and daily graphs. Although we foresee short term downtrend on this pair on weekly and EOD charts we like to stay in safe zone and recommend going long in 2W (1%) In-The-Money 0.71 delta puts and to reduce the cost of hedging by financing this long position, shorting 4D (0.5%) Out-Of-The-Money put option with positive theta and delta close to zero.