Upswings were unable to sustain above 7DMA or 61.8% Fibos, bears may extend slumps but testing supports at baseline.
Broken strong support at 1.7020 in major trend, more slumps likely if current levels sustains.
RBA and BOE’s decisions have eased as expected; consequently, the pair has now slid below EMAs again.
Selling momentum from both and oscillators has been in convergence with declining prices on both weekly and monthly charts.
has remained below zero levels on both weekly and monthly charts which is trajectory, so the major downtrend seems still robust. Most importantly, one can also observe mammoth volumes on declining trend which is again one more clear confirmation of the robust . Hence, despite some minor abrupt rallies we see no significant recoveries in near terms.
Since there are more chances of current prices testing strong support at , the mild prices bounces should not be deemed as opportunities.
Hence, we expect the retest of multi- month's lows of 1.6761 in the weeks to come. Although price bounces above it is advisable to use these rallies to stay short in mid-month contracts for the 1st target of 1.6716 which is next strong support and upon breach of this level once can also look ahead for the 2nd target at 1.6644 by expiration but strict stop loss should be maintained at 1.7115 levels.