Overview:- By analyzing at the daily chart we can see that earlier pair was making successively higher highs and higher lows and heading north side but from last couple of days bears took the charge. Pair has made high of 1.1238 level and then turned back to south side at 1.1100 level which is a strong key support level.
In our previous report also we mentioned to buy the pair at CMP 1.1100 for the target of 1.1200 and 1.1300 with the tight stop loss of 1.1000 and our target has been achieved so we are expecting that our readers must have made profit from this move.
Technical prospective:- From technical prospective we can see that pair a short term uptrend line has been breached out and bears are taking the full charge with full of bearish momentum. The pair is trading below all the major and minor EMA lines which indicate that bears dominating the bulls at every level. A head and shoulder price pattern has been formed on the chart which is providing us bearish signal and the neck line also breached out smoothly.
There is no confusion now, bears have indicated that they are going to be more aggressive in the upcoming sessions so just hold the short position and keep the stop loss. Overall pair is trading and sustaining below the moving average lines which is providing us sell signal. A bearish crossover on MACD indicator is providing us bullish signal and RSI started to decline below 50 which is providing us bearish signal. Odds are in favor of bears and our bias remains bearish on the pair as long as 1.1150 level remains intact.
What next:- The pair could face the next support at 1.1050 ahead of 1.1000. On the upside, resistances align at 1.1150 and 1.1200.
Trade idea:- Based on chart and studies above we can suggest that sell the pair at CMP 1.1100 for the target of 1.1050 and 1.1000 with the tight stop loss of 1.1150.
