Technical Analysis: Traders and analysts often use technical indicators and chart patterns to identify and confirm downtrends. They may look for lower lows and lower highs on price charts, as well as moving averages or trendlines that indicate a downward direction.
It's important to note that currency trends can be influenced by numerous factors, and their analysis involves a combination of fundamental and technical analysis. Market conditions can change rapidly, so it's always advisable to consider multiple sources of information and consult with professional financial advisors before making any trading decisions.