On the daily chart, after two weeks of bearish pressures, bulls taking support at 1.0350 levels and attempting to bounce with a formation of dragonfly doji which is a bullish pattern, the potential for more price upswings are foreseen for now.
Prior to this, gravestone doji evidences price dips that have gone below 7DMAs, although day trend seems to be bullish but likely to be restrained below 21DMA.
Well, considering the broader picture, the downswings have been slipping through sloping falling wedge formation, every price bounces were rejected at wedge resistance and every dip were supported at wedge baseline.
Bulls unlikely to break resistances of 1.0493 & 21EMA, instead, expect more slumps on bearish EMA crossover, momentum indicators to substantiate
The current prices have remained well below EMAs, while MACD evidences bearish crossover below zero level, so we foresee bearish swings to be prolonged.
Both leading indicators (RSI & stochastic) on both time frames are signaling buying sentiments on dailies and selling sentiments on monthly charts. RSI evidences the downward convergence with the ongoing price dips that signifies the strength in the bearish trend, (currently, RSI trending below 42 levels on monthly terms).
While stochastic curve at 20 levels which is oversold zone has been evidencing any %K crossover on dailies and no convincing bullish crossover on monthly terms.
Well, having said that we wrap up with concluding note, short-term bulls can speculate this pair whereas long-term investors at current juncture contemplating above bearish indications, we advocate buying one touch binary call options while shorting futures contract of mid-month or near month expiries for target towards 1.0325, 1.03 or even 1.0235 levels cannot be ruled out upon breach of 1st two targets.
Writers in a futures contract are expected to maintain margins in order to open and maintain a short futures position.
