Overview:- By analyzing at the daily chart we can see that earlier pair was making successively lower lows and lower highs where only bears were showing their full strength and they were doing so well and getting empowered at every lower level. They slipped from the 1.1238 level to 1.0991 level continuously but after making the low it could not sustain at that level and we have seen some buying till 1.1094 level which is a resistance of downtrend line.
In our previous report also we mentioned to aggressive traders may go for buy at 1.1028-25 level for the target of 1.1060 and 1.1080 level 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 1.1100 level is a strong resistance level and bears did the same reaction as we were expecting. We have seen bearish counter attack and bears took the pair at 1.1035 level yesterday, well if today pair close and sustain below 1.1000 level then we may announce that 1.0880 level is not far away from here, but if bulls got the chances then they will get more active above 1.1100 level.
A downtrend line has been formed and it is still valid we will get further bearish signal. Odds are in favor of bears and intraday bias remains bearish on the pair as long as 1.1100 and downtrend line remains intact. The pair is trading below all the major and minor EMA lines which indicate that bears dominating the bulls.
A bearish crossover on MACD indicator is providing us bearish signal and RSI is below 50, which is providing us bearish signal.
What next:- The pair could face the next support at 1.1000 ahead of 1.0950. On the upside, resistances align at 1.1100 and 1.1140.
Trade idea:- Based on chart and studies above we can suggest that sell the pair at 1.1060-63 target is 1.1000 and 1.0950 stop loss is 1.1105
