You can figure out from the monthly chart as well that the attempts of recovery has been showing weakness at 85.646 to drop below 21 &7 curves as the strong supply seen at this level for this pair.
To substantiate this stance, both and on , began showing divergence with the previous upswings; we believe this as bears are getting active again.
is currently trending below 59 levels that has hampered the momentum in rallies.
In addition to that, curves boiling up selling pressures above 80s by showing %D crossover which is overbought signal.
Thus, any breach of the above stated would determine the direction of next uptrend but little bias towards south.
Speculative Trade Idea: (Option Tunnel Spread)
Since, it has been breaking the support at 85.901 from last 3 days consecutively, no wonder if it hits 84 levels in near term or oscillates between 84 and 86.700 levels.
But for intraday terms, we rely on and and as they pop up with overbought pressures thus far, so smart way to approach this pair is to deploy the option tunnel using ATM puts is structured as a binary version of a conventional put spread, i.e. long delta puts with higher strikes while writing the lower strikes for above mentioned targets on either side.
Therefore an In-The-Money tunnel would be formed of an In-the-money -0.75 delta put below the current exchange rate less an Out-Of-The-Money put above the exchange rate. The delta of -0.55 on combined position with slightly negative theta is preferred on this execution.