Overview:- By analyzing at the daily chart we can see that pair is making downside whipsaws with successively lower lows and lower highs where only bears are showing their full strength and they were doing so well and getting strength at every lower level. They slipped from the 1.1238 level to 1.0910 level continuously.
In our previous report also we mentioned to sell the pair at 1.1060-63 target is 1.1000 and 1.0950 stop loss is 1.1105 and our both 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 1.0910 level yesterday, well if today pair close and sustain below 1.0900 level then we may announce that 1.0600 level is not far away from here, the 1.0870 level is the only stumble block for bulls.
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 1.1000 and downtrend line remains intact. The pair is trading below all the major and minor EMA lines which indicate that bears are 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 1.0870 ahead of 1.0820. On the upside, resistances align at 1.0960 and 1.1000.
Trade idea:- Based on chart and studies above we can suggest that sell the pair at 1.0930-35 target is 1.0870 and 1.0820 stop loss is 1.1000
