After non-stop streaks of slumps from the highs of 0.7445, the current prices are now testing supports at 21DMA.
Any attempts of spike have now been struggling below 7DMA levels and it should only be deemed as a fresh shorting opportunity.
Yes, we now emphasize "0.7358" areas as strong support, while the current prices on monthly charts are also hovering around resistance at the sloping channel.
But from last 9 months or so, it looks like a non-directional trend on monthly charts.
While daily is clearly converging downwards to the prevailing price declines. Same has been the case on slow curves as it confirms the selling momentum with %D crossover.
is also substantiating weakness as indicates sell on daily.
The massive volumes have been generated on declining trend (see histograms on monthly charts).
Downtrend sliding in the sloping channel, every now and then attempts of bounces were suppressed at channel resistance and curves.
Hence, contemplating the previous long-term downtrend, we think this pair had taken a brief pause in last several weeks while a slight recovery took place.
Well, for now, the advice for long-term investors is to wait for better clarity if the pair breaches and sustains above 0.7550 levels on a closing basis (range shown on the monthly charts).
But for the intraday speculative purpose, one can think one touch binary puts for the target of 30-40 pips while long-term investors can find opportunities in option strategies suitable for non-directional trend which we come up with such trading ideas in our upcoming posts.