Overview By observing the daily technical chart we can see that earlier pair was trading and moving in a downtrend and a downtrend line was also lying on the chart which was providing strength to the bears, pair made a steep downfall from 146.50 to 126.50 level continuously without any hurdle.
After arriving at 126.50 level we witnessed a upside movement and few trend reversal candlesticks have been posted on the chart like hammer followed by two consecutive bullish marabuzo candlesticks and we have seen a counter attack from bulls till 135.73 level but that was limited to 50% Fibonacci retracement level.
Technical Analysis- The current picture indicates that pair is falling down continuously from 135,73 i.e. Fibonacci retracement level and arrived at 131.60 at the time of writing. Well the pair is trading and sustaining below the moving average lines which indicates further weakness in the pair and a bearish marabuzo candlestick is hanged down on the moving average line which is favoring the bears. Well it’s just a starting of downfall further weakness is still awaited. Odds are in favor of bears and intraday bias remains weak as long as 134 level remains intact.
A bearish crossover on MACD indicator is favoring the bears and providing us bearish signal for the time being and RSI is also providing bearish signal from below 50 territory. The red dots of parabolic SAR at upside of the candles are favoring the bears.
What Next- Today’s closing matter a lot, if bears trades and settles below the 131 then we will get confirmation further weakness and we may announce that bears are approaching the 128 and 126 level once again. The 134.00 level is immediate resistance level followed by 135.80 whereas 130.00 level is strong key support level followed by 129.00 level.
Trade idea:– Based on chart and study above we would suggest that one can go for sell at current levels 131.75-90 level for the target of 131 and 130 with the tight stop loss of 134.
