An insider's look at the current markets
This downside channel has carried the pair from the top at 88.70 to the current levels, we also note that the index was able to breach a pivot support level shown above in red.
Moreover, the index is also under negative pressure from the SMA 50, which is making us believe the index will continue the downside trend over the short and medium terms.
The targets extend beyond the historical bottom at 70.70 to reach 68.00 as a first target.
The momentum indicators are showing the index is trading within an oversold area, which might force the index to fluctuate and tend to undergo a slight upside correctional wave that could lead the index to retest the pivot support that was breached recently at 74.25 before continuing its downside trend.
Overall, we believe that the way is open for the index to acquire the aforementioned targets, but we should note that breaching the 74.25 and settling above this level would delay the downside targets and force the index to rise back towards the main resistance for the downside channel at 76.90.