Bull swings have shown supply zone at trendline resistance on daily charts.
In previous two months, the pair has shown a considerable price recovery from 0.9389 levels to the current 0.9715 levels. But the current prices have tested a stiff resistance at 0.9782 levels on daily technical charts.
A sharp “Gravestone Doji” has occurred at peaks of 0.9743 levels to signify the weakness of this pair at this juncture (see 4H charts).
The current prices are now attempting slide below 7DMA and taking support at the same levels on daily terms.
The massive volumes on price dips, 7EMA crosses below 21EMA, RSI, Stochs & MACD indicative of bearish trend continuation on monthly terms.
Intraday sentiments have been little bullish, while traders on delivery basis should focus on rallies for fresh shorts as the downswings likely prolong if it doesn't hold firmly at current levels and channel resistance.
RSI forming lower lows are indicative of losing strength in current price levels.
While the current prices sliding but hanging at DMA & EMAs are suggestive of bear are still active in this pair.
Hence, any break above channel resistance renders more upside traction and break below DMAs on daily plotting signals downside potential,
Thus, it is good to initiate shorts in near month futures on speculative grounds with a strict stop loss of 0.9782 levels.
Having said that, on the contrary, upside bias depends on break-out above trendline resistance.
The material has been provided by InstaForex Company – www.instaforex.com