The pressure is observed in this pair after the current price goes below 7DMA, and then attempting to break support at 1.6605.
Prior to this, you could probably make out, as and when the pair approaches levels of 1.7038 it either spikes or slides heavily, now more dips on cards as the rejection of resistance with confirmation from leading oscillators.
Compare this rejection with the major downtrend.
On both daily and monthly oscillator, we see consistent convergence to the prices declines.
%D line crossover right from the overbought zone and its attempt of sustenance on slow has been a caution for aggressive bulls, we could foresee that there is still visible selling pressure.
Well, for this month, although you see rallies on the monthly graph, the major bear trend seems robust after breaking supports at 1.7976, upswings were restrained near 7EMA as anticipated.
Volumes formation has been shrinking on this month’s rallies but the same has been mammoth on declining trend.
To substantiate, signals the major downtrend likely to prolong further.
We reckon that the boundary binary option is safe bets for speculation of this pair as it is testing supports at 1.6604 levels.
A trader can use binary options with barriers at 1.6550 and 1.6750 to capitalize on this outlook.
Some traders view this type of speculation as being like a strangle shorting position since the trader stands to benefit on a calculated price movement up or down in both scenarios as long as underlying remains within the strikes.