On the daily scale, the price with the Marlin oscillator formed a convergence. Structurally, however, the convergence is not very strong because it was formed after the oscillator signal line returned from the positive zone, which it had been in for a long time—more than 14 trading sessions.
As a result, further movement of the oscillator's signal line may follow a descending channel marked by red lines. Under the main scenario, the price could decline to the target level of 1.2367, successively breaking through 1.2510 and 1.2447. On the four-hour chart, the price reversed from the balance indicator line (see arrow).
The price may revisit the target level 1.2616 to address unfinished business before turning downward to test support levels. The Marlin oscillator is consolidating near the zero line, allowing for such a test of resistance. However, the overall trend remains bearish, as the price is below the indicator lines, and the MACD line is trending downward, confirming the direction of the short-term trend.
