XBRUSD has been on a temporary downtrend since the beginning of the month. The price fell to the 67.6 levels and recovered some ground just a few days ago; however, in the last two sessions, it lost more than 1%, which is not very significant, but the technical indicators suggested that the price could recover.
The Bolinger bands are wide and now moving downwards, indicating a downtrend; this will also bring higher volatility to the pair in the upcoming trading sessions.
The relative strength index is at 44%, which in theory would allow the price to start a recovery. The pair could not find support and trades below the 38.2% Fibonacci retracement. The energy commodity can make a breakout attempt in the mid-term, but judging by the current conditions, we expect the price to fall a bit more before this happens.
Our parabolic SAR indicator suggests that the price will continue to fall in the short term; remember that this is a lagging indicator and works only as support for other indicators.
The short and long-term moving averages crossed on July 30th, and the gap between the lines continues expanding, indicating that a downtrend can be expected.
The price left the Ichimoku cloud behind and trades below it, suggesting that a more significant drop is possible.
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