Despite attempts of upswings 21DMA acting as stiff resistance, major trend drifting through sideways.
Current prices test supports at 1.1149 levels bounces back.
Major non-directional trend long lasting, likely to prevail further.
(14) on both daily as well as monthly charts is diverging to the current rallies and being bias. The environment has resulted in the selling momentum when prices touched 57 levels by taking the computation of last 14 day periods the magnitude of recent gains to recent losses in an attempt to signify the overbought pressures.
While slow curves are highly indecisive to signal clear trend direction.
We think the pair from here onwards largely , if it doesn't manage to hold onto the current level, then the next strong support can be seen at 1.1080 levels in short term.
Long-term investors should be cautious, even if it holds the current levels, we see restricted upside potential at 21EMAs, at this juncture momentum in previous rallies likely to collapse, the long term non-directional trend seems intact. Hence, in the long run, we still project below cyclical lows 1.10 but between the range of 1.08-1.09 by the Q1'2017 end. On intraday speculation purpose, buy one touch binary calls on every dip but failure swings do not encourage these trades, thus, be mindful of 21DMAs.