After the break out below 1.4949 and the neckline of double top has more downside potential, currently at 1.4786 levels after rejecting resistance at 1.4827 levels.

From last couple of days, it has now been drifting in sideways by showing some selling momentum but on the contrary the bulls are holding stronger supports at around 1.4555 levels.

However, the bearish trend remains intact as the both leading and lagging indicators are still favouring bearish environment.

After 2-3 days of mild recovery, the leading oscillators have again diverging to these minor upswings, hence, we think any abrupt upswings could be treated as deemed momentary gains.

on a broader perspective, a shooting star pattern candle is traced out at 1.5127, which is bearish in nature and evidencing its bearish effects, as a result we are now seeing the pair to drift between 1.4876 to 1.4555 levels from last couple of weeks.

The same bearish divergence in RSI to the previous uptrend is observed on monthly charts.

RSI on daily terms is currently diverging below 48 levels, while an attempt of %D crossover at 65s which is again a weakness in current price.

Most notably, since it has recently rejected below resistance at 1.4949 levels, although the current upswings are not able to move above 7 & 21EMAs.

Trade Tips:

In addition to the above technical observation, we could also foresee intraday bearish sentiments as the prices slipping below 21DMA along with bearish convergence on leading oscillators (on 1H charts), so it would be no surprise if it drags further below, on north  we don't think it has much potential in intraday terms, so any abrupt upswings should be utilized to build below strategy.

As we rely on stochastic and RSI, smart way to approach this pair at this stage is to deploy the option tunnel using ATM puts is structured as a binary version of a conventional put spread for targets of around 40-50 pips, i.e. long delta puts with higher strikes while writing the lower strikes for above mentioned targets on either side.

Therefore an In-The-Money tunnel would be formed of an In-the-money -0.75 delta put below the current exchange rate less an Out-Of-The-Money put above the exchange rate. The delta of -0.55 on combined position with slightly negative theta is preferred on this execution.