Well, after achieving our previous targets at 1.1017 we are now back into bearish business.
On daily chart, despite forming a shooting star pattern on rallies, bulls have been disregarding and managed to breach the crucial resistance at 1.0928 levels (see blue colored circled areas in which demand is seen more than supply).
The price has now been behaving to complete a descending triangle pattern at 1.1017 which was exactly our earlier targets.
The rallies could not sustain declining top trendline and collapsed below support at 1.1017.
The spot FX at this juncture trading at 1.0969, if it manages these levels on a closing basis then we reckon that this pair would certainly approach 1.1017 which is next resistance.
More importantly, daily prices have declined below 10DMA.
Signals from leading oscillators:
RSI evidences the divergence with previous rallies, (currently, RSI trending at 59.6574 while articulating).
While, stochastic curve indicates selling pressures at overbought zone. %D crossover above 80s alerts bulls seem to be exhausted in previous rallies.
All these indications can help us understand the previous upswings are exhausted out for show their strength.
Most likely scenario: As it failed to hold on baseline support, dipping towards 1.0942 is pretty sure for us (i.e. 23.6% fibo retracements).
Adverse scenario: Alternatively, although break above 1.1017 looks stronger resistance it seems unlikely event.


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