The pair after testing supports at 4.2625 levels, bull swing has been dragging from last 3-4 consecutive days but the prevailing upswings could be dragged but capped at resistances of 4.3124 & 4.3185, failure swings may bring in bearish momentum.
RSI indicates the strength is favored by interim bull swings.
Daily stochastic signals the momentum in bullish sentiments. Whereas these signals are not substantiated by lagging indicators, MACD has remained well below zero levels and there is no bullish crossover yet.
On a broader perspective, back to back shooting stars evidence dips, slide below 20EMA to bring in more slumps (see monthly chart).
Intermediate trend takes support at 20 & 21EMAs.
RSI evidences consistent lower lows, converges to the price declines.
The %D crossover on slow stochastic curves on monthly terms implies that the selling momentum is intensified.
Trade Tips:
One can use current rallies to deploy fresh shorts in this pair by shorting 2D 0.5% ITM puts, while simultaneously adding longs in 1w ATM puts, the position resembles like credit put spread but the strategy would probably be entered at net debit as we chosen very narrowed expiries on shorts side as the bearish sentiments are comparatively more amid current rallies, but we don’t want to miss out the upswings that could effectively reduce the cost of the option trade.
