Overview:– On a first look of the daily, weekly and monthly chart any one can see that bears are holding the grip in their hand. The bears are driving the car and seems like they are going on a long drive and being a trader one should go for short and sit in the car. Overall bears are beating the bulls like black and blue and dominating at every corner even they are not giving any chance to bulls.
Well the bears were already leading in the game and last week they proved their self by posting a strong bearish marabuzo candlestick on the weekly technical chart which indicates that bears are in party mood and testing the depth of the river. As we can see that pair is heading south side with full of bearish momentum and it is hanging down below the moving average lines.
In our previous report also we mentioned to sell at 1.0770-1.0780 for the target of 1.0700 and 1.0630 with the tight stop loss of 1.0840 level so our first target almost achieved and we are expecting that our readers must have made profit from this move.
Technical Analysis:- From technical prospective we can see that a down trend channel is forming and pair is trading and sustaining between the channel and very balanced demand and supply is going on, which is providing us bearish signal and pair is trading below all the major and minor EMA lines.
The way bears are reacting on the weekly as well as on the daily chart it is indicating that pair will defiantly test the 1.0580 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 1.0500 level on a bigger picture. Recently it marked a low of 1.0627 and further sell off is still awaited.
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 us bearish signal from negative territory. The 1.0700 level is immediate resistance level followed by 1.0750 whereas 1.0570 levels is strong key support level followed by 1.0500 level. A valid breakout of the 1.0700 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. 1.0630-1.0640 for the target of 1.0570 and 1.0500 with the tight stop loss of 1.0700 level.
