XBRUSD has lost 7.25% in the last six trading sessions, a situation we had not seen since January 2020. This downtrend started at the end of July and has carried on since the price broke four Fibonacci retracement levels in only 14 days; the pair is now considered to be on a general downtrend.
The price trades below the 50% retracement, which is usually a good indicator of a trend reversal when broken; in addition to that, the short and long-term moving averages crossed the last day of July, and the gap between the lines just continues expanding.
The Bollinger bands are open, and this will bring higher volatility to the pair; however, the price trades very close to the lower band, suggesting that the price is relatively low; this could incentivize traders to close their shorts and start placing long positions as there is a change for a retracement.
The relative strength index is at 33%, not oversold yet, but very close, which at this point could also be sending a strong message to investors.
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