If you have to plot , the trend drifting in sideways, appears at the resistance of 1.0750 to resume swings.
The previous upswings have consistently been rejecting to the push southwards as and when it hits resistance of 1.0750 levels.
That is where back-to-back “Shooting Star” patterns occurred and leading oscillators diverge to the previous rallies.
These candle patterns are highly in nature that too have occurred at resistance levels to evidence the downswings below 7DMA.
As a result, we see no momentum in swings but the same should not be perceived as a shorting opportunity. For safe trading, we advise waiting for the pair to drift below well below 7DMA decisively.
On a broader perspective, the major trend seems still weaker ahead of next month’s RBA , on monthly has been converging downwards to these effects that signal the strength in these selling sentiments in the spot.
While, on the other hand evidences weakness as there is no clear %k crossover even at the oversold region.
has remained below zero, so there could be chances for cautious or shrewd bears may resume and wipe off previous gains at any time.
Hence, at spot ref: 1.0671 levels aggressive bears can go short this near for targets of 80-100 pips southwards with a stiff resistance at 1.0750 levels, thereby one can eye on ideal risk reward ratio.