On weekly plotting, after three weeks of upswings we traced out a sharp gravestone doji at 1.1048 levels to signify the weakness again in this pair.
As a result, the brief upswings could not sustain and drop below the resistance of sideway trend channel.
This range has lasted almost for 6 months, but the moment when it breached the above mentioned Gravestone doji pattern is occurred. That is from where it's been drifting down.
21DMA crossing over 7DMA at that juncture which is sell signal (see red colored circle).
We could also see the momentum in these slumps as both leading oscillators are converging downwards to these slumps.
RSI on weekly is currently trending at 53.5742, while %D crossover just a shy below 50s.
On a break out and doji formation the huge volumes were also in conformity to these slumps.
But MACD hints the upcoming trend is likely to prolong in the same range like we've been seeing from last 6 months. Long term FX investors may get good hedging arrangements capitalizing on this signal.
Nevertheless, short term bears can eye on shorts in near month futures for targets of 100-150 pips with stiff stop loss of 1.0978.
