- December 20, 2019
- Posted by: cabana-admin
- Category: Forex Broker
Overview:-By analyzing the daily technical chart we can see that pair is falling down and heading south side. Bears are taking the control on the pair and playing at the front foot, the way bears are reacting it seems like they are approaching the 1.0800 level. Recently it marked a low of 1.0856 and then again bounced back to 1,1020 level. Now it has turned back to 1.0937 now it seems like bears will test the previous low of 1.0800 level. As we can see that a pair of bearish marabuzo candlesticks has been posted on the chart which indicates us to sell the pair.
Fundamental Analysis:- US President Trump was responsible for introducing additional fears about a global trade war, by announcing plans to impose tariffs of up to 100% on French products worth $2.4B in response to France’s digital tax. French Finance Minister Le Maire quickly responded and said that the EU wouldn’t hesitate to strike back. The risk-off mood prevailed through the different sessions, with the greenback under pressure.
The EU released the October Producer Prices Index, up in the month by 0.1% but down by 1.9% when compared to a year earlier. The US, on the other hand, published the ISM-NY Business Conditions Index, which improved in November to 50.4 from the previous 47.7, also beating the market’s expectation.
This Wednesday, Markit will unveil the final versions of the Services PMI and the Composite PMI for the Union and the US, while this last, will also release the official ISM Non-Manufacturing PMI, foreseen at 54.5 from the previous 54.7.
Technical Analysis:- From technical prospective we can see that a double top pattern has been formed which is providing us bearish signal pair is trading below all the major and minor EMA lines.
Odds are in favor of bears. Intraday bias remains bearish on the pair. The MACD indicator is also favoring the bears and still providing us bearish crossover. RSI is providing bearish signal from negative territory. The 1.0970 level is immediate resistance level followed by 1.1050 whereas 1.0850 levels is strong key support level followed by 1.0800 level. A valid breakout of the 1.1000 level will give us trend reversal signal and we may see buying as long as this levels remains intact go for short.
Trade idea:- The present picture suggests us that sell at the current levels i.e. 1.0880 for the target of 1.0810 and 1.0750 with the tight stop loss of 1.0950 level