Despite yesterday’s price jump and attempts of upswings during early trade sessions today bears resume near 7DMA pushing southwards. So, we urge not to get overestimated for dramatic spikes.
The failure swings at major resistance 0.7719 have collapsed to the current levels of 0.7556 (Consistently falling below DMAs in the recent past).
On EOD terms, and noise with strong momentum to signal selling pressures as they are converging to the prevailing downswings.
While evidences crossover and 7DMA crosses below 21DMA that is again a signal of downtrend continuation.
On a broader perspective, the failure upswings are seen to break above channel resistance as and when bulls approach this level and same on the downside as well, it takes support at channel support comfortably to bounce back, overall, the major price trend has been sliding in the sloping channel.
As a result, we think since it doesn't manage to break above decisively which would likely create more potential in days to come.
Well, on the speculative basis, one can use tunnel spreads which are the binary version of the debit put spreads with ITM stikes of 40 pips above and OTM strikes 40-50 pips for targets of 40-50 in between pips with ease. Having these positions one can catch hold rallies for shorting objectives, thereby, speculators can get hold entry points at much higher levels, so that our net returns could be enhanced with leveraging effects.
While on delivery basis, if the pair does not manage to hold onto the current levels, then shorts in near month are advisable for targets of 0.7412 in near terms.