Overview:-By looking at the daily chart we can see that pair is heading south side with full of bearish momentum as we can see that it is hanging down below the moving average lines and a double top pattern has been formed with the slope of rounding top pattern. A very balanced supply pressure on the daily chart is indicating that pair will defiantly test the 1.0700 level. 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 1.0700 level. Recently it marked a low of 1.0780 and bounced back to 1.0810.
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 1.0870 level is immediate resistance level followed by 1.0950 whereas 1.0700 levels is strong key support level followed by 1.0650 level. A valid breakout of the 1.0900 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. 1.0820-1.0830 for the target of 1.0750 and 1.0700 with the tight stop loss of 1.0900 level
