Overview:- By analyzing the daily technical chart we can see that earlier pair was doing well for buyers and it marked a fabulous rally from 1.2199 to 1.3011 level continuously and after that we have seen a small correction till 1.2787 level which was another opportunity to buy for those who have missed earlier. The pair is again headed towards north side but that was limited to 1.2974 and then lost the grip from the market and it started to fall again.
The 1.2700 level is a psychological level so we will get further bearish signal below this level and a daily closing below this level will open the way towards the 1.2500 level.
Technical Analysis:- From technical prospective we can see that a double top pattern has been posted on the chart which is providing us bearish signal and we will keep our view bearish on the pair as long as 1.3020 level remains intact. Odds are in favor of bears and intraday bias remains bearish on the pair. Pair is moving below the minor EMA lines which is providing us bearish signal.
By applying the Fibonacci retracement line from long term peak and trough we found that it has retraced almost 61.8% level and now it’s time to go down once again.The bearish crossover on MACD indicator is favoring the bears.RSI has turned down near to 50 level which is showing weakness in the pair. Well traders are advised to go for short as long as 1.3010 level remains intact.
What next:- On contrary If bulls take the charge and settles above 1.3010 level then we may see further strength in the pair. The 1.3100 level is immediate resistance level followed by 1.3200 whereas 1.2710 level is strong key support level followed by 1.2600 level.
Trade idea:- Based on chart and studies above we can suggest that sell the pair around current levels 1.2840-30 target is 1.2700 and 1.2600 sl is 1.3010 level.
