21DMA - 1.8965

7DMA - 1.8782

Spot ref: 1.8778

No trace of buying scenes, we continue to maintain our bearish view from last week.

Bears resume after rejecting 21DMA, Short on rallies as the current prices drifting below 7DMA again (see daily chart).

On daily charts, bears slide along sloping channel, Shorting opportunities are generated on rallies as the current prices drifts below 7DMA again.

Breaches below crucial supports at 1.9309 (38.2% fibo) and now at 1.8838 may expose towards 50% retracements, bears can load weights in short as selling momentum is confirmed by leading oscillators.

Convergence between price, volumes and leading indicators confirms bear trend continuation.

More bearish indications:

Breach of the sloping channel base line that was acted as a baseline from last 6 months or so (see daily charts for downswings sliding below channel).

MACD has just shown bearish crossover which signals a trend continuation.

21DMA crossing over 7DMA has been maintained and the current prices have slipped below 7 & 21DMAs but within lower BB range that signals long term downtrend prolong further.

Bullish trend reversal after the evidence gravestone doji and hanging man patterns at around 2.1553 and 2.1607 levels on monthly charts

RSI on both daily and monthly converges the robust price dips (daily - below 36s & monthly - below 45), while no deviation from monthly MACD, the lagging indicator also confirms the downtrend continuation.

Trade tips:

With all above technical reasoning we can brave-heartedly advise long term bears can very well expect southward targets around 1.8372 levels.

But why thinking dubious when your research is so certain about it, on an intraday speculative basis, one can expect exponential returns only through leveraged products "One Touch Binary Puts".

At spot ref 1.8778 and current IVs are at almost 14.53%, one can use these options with extremely shorter tenors like 1H or 30-mins. expiries. Usually, such binary options for every change in 1 pip the relative change in option price 0.01% or even exponential at high implied volatility times. You can see that in charts how every dips would propel Vega effects.