As the pair drags upswings 1.9313, we see bears rejected at this level.
As a result, the formation of “Long Legged Doji” is seen at 1.9147.
By then, oscillator has reached overbought region and popping up with selling pressures as we see the attempts of %D crossover above 80s.
Although price bounces above, has remained below zero levels which is a trajectory.
Major downtrend seems still robust.
We had stated in our previous post that the breaches below crucial supports at 2.0054 and 1.9302 may expose towards .
Despite this month’s price bounces, the pair has now created a new environment as it has consistently remained below 7DMA from last 6 months or so.
Bears can load weights in short as selling momentum is confirmed by leading oscillators.
On monthly plotting, the extensive evidences of continuation after the evidence gravestone and patterns at around 2.1553 and 2.1607 levels on monthly charts that are highly in nature as appeared at peaks of rallies.
on both daily and monthly are in convergence to the robust price declines, while %D crossover on slow still maintains even oversold territory that is one more signal for momentum to continue in long run.
While no deviation from monthly , the lagging indicator also confirms the downtrend continuation.
Hence, we expect the retest of 1.8372 (which is 50% fibo) in the weeks to come. So it is advisable stay short in mid-month contracts for the 1st target of 1.8838 which is next strong support and upon breach of this level once can also look forward for 2nd target at 1.8372 by expiration but strict stop loss should be maintained at 1.9313 and 1.95 levels.