Overview:- By looking at the daily chart we can see that overall pair is heading downside with strong bearish sentiments clearly in downtrend but after arriving at 1.1026 level we have seen some response from bulls and bulls took the pair to 1.1250 and then again bears took the charge and pair fall down to 1.0957 level at the time of writing. Well pair has fallen too much and now it has arrived at key support levels on monthly as well weekly chart so in coming days we may see some reversal candlesticks.
As we have mentioned in our earlier report that short the pair around 1.1350 for the target of 1.1100 with the stop loss of 1.1420, we are expecting that our readers must have made profit from this move.
Technical prospective:- The gan lines shows different folds of the trend and presently market shift from one fold to second fold which indicates that momentum of downfall has become slow but we will get reversal signal once pair trades and sustains in the 4th flow of the gan lines. Odds are in favor of bears and our bias remains bearish on the pair as long as 1.1200 level remains intact, so for the time being keep short position with strict stop loss as we know that primary trend is down and secondary trend is also down. A bearish crossover on MACD indicator is favoring the bulls and providing us bullish signal for the time being. RSI arrived in the negative territory i.e. below 30, which is supporting the bulls.
Overall pair is trading below the moving average lines which is generating bearish signal on daily basis from short term prospective. The long term traders are advised to go for long at any reversal on daily chart because the downside risk is not that much there are high chances that for upside momentum which will be a good risk and reward ratio.
What next:- Overall pair is trading in the downtrend and was making successively lower lows and lower highs with every swing the intermediate term trend is down, so in a downtrend market always sell on high which will be profitable strategy. The pair could face the next support at 1.1025 ahead of 1.1000. On the upside, resistances align at 1.1200 and 1.1250.
Trade idea:- Based on chart and studies above we can suggest that sell8around1.0980-90 for the target of 1.0900 and 1.0850 level with the tight stop loss of 1.1050.
