Although bulls have managed to bounce above DMAs but struggling to break above and sustain above stiff resistances of 1.3033 levels. For now, the upswings go into whipsaws, failure swings at stiff resistance likely to evidence more slumps on struggling momentum
This is where both leading oscillators have been sending skepticism, RSI signals indecisive but no strength in the bullish trend. While stochastic curves signal indecisive at the overbought trajectory.
The current price behavior resembles whipsaws pattern at 7DMAs, consequently, contemplating previous rallies price slumps can be possible upon slide below DMAs.
On the contrary, the sustenance above may drag rallies upto next resistances at 1.3286 levels.
Well on a broader perspective, both leading & lagging oscillators indicates the losing strength in the consolidation phase in the major bearish trend, where current prices are well below 21EMAs.
The downswings have constantly been sliding testing channel resistance or at 21EMAs, with confirmation from both trend and momentum indicators (refer monthly charts).
Historically, RSI’s downward convergence below 49 levels on monthly terms and stochastic curves are still near oversold territory does not signal the strength upswings.
MACD is not deviating from this bearish stance, signals the downtrend to prolong further remaining in bearish trajectory.
Trade tips:
Contemplating the skepticism in the short term bullish trend and the major downtrend, at spot reference: 1.2905 we recommend on both hedging and speculative grounds we recommend shorting mid-month month futures to arrest downside risks.
Writers in a futures contract are expected to maintain margins in order to open and maintain a short futures position.
