Cable’s consolidation phase restrains at falling wedge resistance, minor trend hovering below DMAs with shooting star and railroad patterns – Bid one touch put:
Before we begin with this technical write up, let’s glance through our previous write up on this pair, where we had advocated short hedges in order to arrest bearish risks a few days ago:
Now see the pair has tumbled from the previous month highs of 1.3658 to the current 1.3129 levels, since then the above hedging advice would have arrested these FX loses smartly, rest is history.
For now, the pair has been hampering every upward movements by the occurrence of the shooting star and railroad patterns at 1.3283 and 1.3151 levels respectively. Consequently, the bears manage to evidence slumps below DMAs, while both leading & lagging oscillators have been in bears' favor (refer daily charts ).
Last month, although bulls have attempted to extend rallies above falling wedge resistance but could not sustain above 21-EMAs, as a result, the major trend seems to be resumed again in falling wedge .
Both leading oscillators seem to be in bears’ favor, RSI constantly evidences downward convergence to signal the strength in bearish rallies (on dailies). While stochastic curves have been slightly indecisive on monthly but show downward convergence to the price dips that signals intensified selling momentum (on daily terms).
On the other hand, lagging oscillators are also in sync with the same bearish stance offered by the leading indicators. MACD indicates the price slumps to prolong further, while the current prices remain below DMAs with bearish DMA crossover.
The consolidation phase turns into bearish again, the major trend restrained below 21-EMA.
Submit Your Comments: