Overview:– By analyzing the daily chart of the pair we can see that is falling down with strong bearish momentum and pair converted all the bullish sentiments into the bearish momentum. Well there is no chance for bulls for the time being and the way bears are reacting it seems like they are approaching the 1.3000 level in near term. In our previous report we mentioned to short around 1.3350-70 level for the target of 1.3200 and our target achieved. It slipped almost 200 pips from there so we are expecting that our readers must have minted profit.
Technical Analysis:– From technical prospective we can see that a potential double top pattern along with rounding top pattern has been posted on the daily chart which is providing us bearish signal and indicating that bears are approaching the 1.3000 level. Two consecutive bearish marabuzo and bearish engulfing candlesticks have been posted on the daily chart which is generating bearish signal. A bearish crossover on the MACD indicator with signal line and MACD line is also generating bearish signal. The RSI has turned down below 50 levels which is flashing the downside signal. By applying the Fibonacci retracement line from previous swing’s low to high we can see that pair has retraced exactly 61.8% which indicates that now it’s bear’s turn and further downfall is still awaited.
What next:- Overall pair is trading and sustaining below the moving average lines which is generating bearish signal. Below the 1.3200 level we will get further confirmation of bearishness and a daily closing below this level will open the way towards the 1.3100 and 1.3000 level. The 1.3350 level is key resistance level followed by 1.3450 level whereas 1.3150 level is key support level follwed by 1.3100 level.
Fundamental analysis:- The key factors to weakening the data is US manufacturing weakness spilling over into the services sector and and US manufacturing data was the key factor for the downfall in the US dollar. The US Trades war is still pending some optimism outlook is expected but there is no official news at the moment.
Trade idea:- Based on chart and studies above we can suggest to our readers that go for sell around 1.3230-20 level for the target of 1.3000 level with the tight stop loss of 1.3350 level.
