Although EURUSD spiked today to above 1.06 levels, it just 88 pips away from 1-yea lows (i.e. 1.0516). But we advise not to jump the guns, is there any substantiations from any other indicators? Compare the prevailing upswings with the major trend.
Snap rallies to deploy shorts as no traces of indications of the uptrend, instead trace out selling momentum and bearish crossover on SMAs.
RSI remains near oversold territory and still indicates slight indecisiveness in the prevailing downtrend but with convincing strength in declining trend.
Stochastic curves also remain below oversold zone but still signals indecisiveness as there is no convincing traces of %K crossover.
MACD’s bearish crossover indicates more slumps on cards.
Most importantly, please be noted that the massive volumes formation on declining prices, it is well in conformity to the bearish trend.
The dollar edged lower against the other major currency peers earlier today but held near recent highs amid expectations that the Federal Reserve is on track to raise interest rates this week.
