The bearish pressure is observed in this pair again, despite vigorous upswings bulls restrained at resistance, consequently, bearish swings resume (refer daily chart). Any break below 7DMA & 1.5964 to bring in more bearish rout.
On a broader perspective, you could probably make out, as and when the pair approaches 7EMA it has consistently dipped in the recent months (refer monthly plotting), now more dips on cards as the rejection of resistance with confirmation from leading oscillators.
Please also be noted that as and when swings approached a pivot levels of 1.6371 it either spikes or slides heavily. Compare the breach below this levels with major downtrend (refer monthly chart).
On both daily and monthly RSI oscillator, we see consistent convergence to the prices declines.
%D line crossover right from overbought zone and now even below 20s which is oversold region, its further convergence below on slow stochastic has been a caution for aggressive bulls, we could foresee that there is still visible selling pressure.
Well, for this month, although you see strong rallies on daily graph, the major bear trend seems robust after rejecting stiff resistances.
To substantiate, MACD signals the major downtrend likely to prolong further.
Well, having said that we wrap up with concluding note, short term aggressive bulls can speculate this pair whereas long term investors at current juncture contemplating above bearish indications, we advocate shorting futures contract of mid-month or near month expiries for target towards 1.5964 and 1.5724 or even upto 1.5531 levels cannot be ruled out upon breach of 1st two targets.
Writers in a futures contract are expected to maintain margins in order to open and maintain a short futures position.
For an intraday speculation, one can buy tunnel spreads, which are binary versions of debit put spreads.
This strategy is likely to fetch leveraged yields than spot FX and certain yields keeping upper strikes at 1.6192 and lower strikes at 1.6049 levels.