EMBASKET In Downtrend But Oversold

Here we see FXCM's, EMBasket, which is equally weighted between the the Chinese renminbi, Mexican peso, South African rand, and Turkish lira. We can see that the green 5-day EMA is below the orange 10-day EMA with good angle and separation i.e. there is a downtrend that has momentum behind it. Moreover, the RSI is on the bearish side of 50. However, we do note that the oscillator is below 20 and oversold. Therefore, the index is likely to pause or correct in the near term as the oscillator normalizes and as profits are banked. However, this may provide another opportunity i.e. bounces may be eyed for further short entries.