Overview: – By analyzing the daily technical chart we can see that overall pair is moving downside from past couple of days. Well the down side momentum can be seen on the daily chart where initially bulls took the charge and then bears took the charge From last couple of days we can see the bearish sentiments and pair is heading towards south side. Well the way bears are reacting it seems like they are approaching the 0.9700 level once again in near term.
Technical Analysis:- From technical prospective we can see that pair has breached out all the moving average and sustaining below the lines. An uptrend line has been breached out and pair is trading below the uptrend lines. Odds are in favor of bears and intraday bias remains bearish on the pair as long as 0.9900 level remains intact.
It’s just a starting further selling is still awaited and we may see panic selling below 0.9800 level, if bears are able to break the 0.9800 level and provides daily closing below this level then we may see strong selling. RSI is turned down below the 50 level which is also favoring the bears and suggesting that bears may lead further. A zero line crossover on the MACD indicator is also a recent development on the chart which indicates that now bears will play at the front foot and will dominate the bulls, however MACD line and signal line are also showing the bearish crossover which is providing us downside signal.
What next :- The 0.9900 is key resistance level followed by 1.0000 level whereas 0.9800 level which is a key support level followed by 0.9700 level.
Trade idea:- Based on the chart and study above we can suggest go for short at current levels 0.9850-60 for the target of 0.9800 and 0.9740 stop loss is 0.9940.
