On daily charts, the bears have been constantly sliding below 7DMA after the rejection of stiff resistance of 1.2742 levels; the current prices remain well below 21DMAs despite the recent attempts of spikes. Today again bulls attempting to bounce back but we see stiff resistance at 7DMA with confirmation from momentum indicators for selling sentiments.
We see repetitive history at 1.2742 several times, you could also observe bearish DMA crossover as the current prices remain below 21DMAs for now, expect more slumps on bearish DMA crossover.
The price dips may extend upto next strong support of 1.2103 on healthy bearish momentum as we could notice bearish convergence on leading oscillators.
On a broader perspective, both leading & lagging indicators confirm the major bearish trend, the current price on this timeframe as well is consistently below 7EMAs heading for the retest of multi-year lows.
The downswings have constantly been sliding testing resistance at EMAs, with confirmation from both trend and momentum indicators (refer monthly charts).
RSI’s convergence below oversold territory doesn’t signal the strength in bullish effects.
Stochastic curves on both time frames have been indecisive to signal either bullish or bearish momentum.
MACD is not deviating from the bearish stance, signals the downtrend to prolong further with its bearish crossover.
Overall, the major bearish trend has been robust, the current price is just around 200 pips away from multi-year lows. Hence, never buck the robust bearish trend. Instead, deploy short futures with mid-month tenors to arrest downside risks.
