On weekly plotting, after three weeks of upswings we traced out a “Long Legged Doji” at 1.0979 (a resembling Shooting Star pattern is popping up at the moment).
These bearish patterns evidence the weakness again in this pair, as a result we now see the slumps dropping in the narrow range trend again.
The brief upswings were not sustained even though break out above resistance at 1.1016 and drop below the resistance of sideway trend channel.
The prevailing prices are slid below moving average curves.
Daily RSI is making lower lows to signify the weakness at this juncture and on weekly is currently trending below 56.
While the attempts of %D crossover below 80s on daily charts also signal selling pressures.
Please be noted that this range has lasted almost for 6 months, but the moment when it breached the above mentioned Gravestone doji pattern is occurred. That is from where it's been drifting down.
But MACD hints the upcoming trend is likely to prolong in the same range like we've been seeing from last 6 months. Long term FX investors may get good hedging arrangements capitalizing on this signal.
Trading Tips:
Intraday speculators can eye on one touch binary puts for targets of 25-30 pips.
Alternatively, short term bears can even prefer shorts in near month futures for targets of 100-150 pips with stiff stop loss of 1.1016.
The material has been provided by InstaForex Company – www.instaforex.com