Overview:- Earlier EUR/USD was heading towards north side where bulls were leading in the game and marked high of 1.1421 level which was a fresh high of 3 months but after arriving at key resistance level bulls could not sustain and last week we have seen some reversal price action and bears took the pair at 1.1211 level on Friday itself.
Well the current selloff is a correction (profit booking) or trend reversal, the way bears got charges from the resistance zone it seems like it’s trend reversal signal and we got a weekly closing at 1.1254 with a reversal pattern on the weekly chart.
We are continuously buying the pair from 1.0700 in our previous reports and booking the profit at every 200 pips in our recent report we mentioned to buy at 1.1100 level and our targets was 1.1300 and 1.1500 level where our first target achieved like a cake walk and second missed by 79 pips, but anyways it was awesome call. Now it seems like bears are leading in the game and taking the charge, so if today pair goes below 1.1200 level we may see further selloff till 1.1050 at least.
On 4 hourly charts we can see that pair has breached the uptrend line which was the last hope for the bulls and now bears are trading and sustaining below the uptrend line which is providing us trend reversal signals. The parabolic red dots are occurring above the candles which are providing bearish signal.Odds are in favour of bears and intraday bias remains bearish on the pair as long as 1.1400 levels remains intact on closing basis. Pair already trading below all the major and minor EMA lines on 4 hourly chart which is favouring the bears. A bearish crossover on the MACD indicator is the recent development on the daily chart and RSI is also favouring the bears.
Trade idea:- Intraday traders are advised to go for sell at 1.1236 target is 1.1100 and 1.1000 level with the tight stop loss of below 1.1400.
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