More swings have been evidenced as a confirmation (see next candle after this pattern, the previous day close is higher the prevailing price).
The pair has been tumbling to break major supports at EMAs after the formation of this pattern on the monthly graph.
That is where robust build ups were in conformity to these downswings.
We think, in a long term bears' intensity is strengthening as there are no signs of strong buying sentiments so far on the technical charts of any timeframe.
RSI: Currently, (14) on both daily and monthly are clearly converging downwards to the prevailing price dips to signal more strength in selling sentiments.
Stochastic: This leading oscillator has approached oversold territory but no convincing crossover. Monthly stochs still evidence %D crossover at 48 zones that conforms to these price dips with intensified selling momentum.
Well, both leading and lagging indicators indicate momentum by converging downwards to these price dips, while and moving averages confirms the downtrend continuation on monthly charts.
So, on speculating grounds, shorts in mid-month contracts are advised for the targets below 1.4114 levels with a strict stop loss at 1.4864 (21EMA).
The short position is also used by the traders to lock in a trading price of the FX that he is going to sell in the future. Please be noted that as the expiry period approaches, the price converges to the spot FX of EURAUD .