Overview:– By analyzing the daily chart of the pair we can see that earlier pair is falling down with strong bearish momentum. Yesterday also it marked a low of 1.3114 level and now at the time of writing it is trading at 1.3169 level.In our previous report we mentioned to buy around 1.3170 level for the target of 1.3250 and pair has made high of 1.3316 level which is a sharp incline, we are hoping that readers are minting profit at the moment.
Technical Analysis:–
From technical prospective we can see that a rounding top pattern along with double top pattern has been posted on the daily chart which is indicating that bears are leading in the game and playing at front foot. The 1.3100 level is the support level and a valid breakout below this level will open the way towards the 1.3000 and 1.2900 level. Overall pair is trading below all the major and minor EMA lines which is providing weakness in the pair.
A bearish crossover on the MACD indicator with signal line and MACD line is also generating bullish signal. The RSI has turned down below 50 levels which is flashing the downside signal.
What next:- The pair has arrived half way of the rounding top pattern now it seems like they complete the price pattern at 1.3000 level in coming trading sessions. The 1.3280 level is key resistance level followed by 1.3350 level whereas 1.3000 level is key support level follwed by 1.2900 level.
Trade idea:- Based on chart and studies above we can suggest to our readers that go for sell around 1.3180-1.3190 level for the target of 1.3100 level with the tight stop loss of 1.3050 level.
