Overview:- Bears are doing so well and dominating the bulls at every level and heading south side, pair is falling down from 2.0269 level continuously and arrived at 1.9855 where bears did their job in a good manner but after arriving at 1.9855 level which is a strong key support level, after arriving at key support level we have seen strong counter-attack from bull’s campaign. The way bears are reacting it seems like pair has topped out and headed to the south side.
Technical Analysis:- From a technical perspective an uptrend line has been breached out which is providing us the bearish signal and below this line we are seeing a downfall in the pair. On 4 hourly chart pair is trading and moving below all the major and minor EMA lines which is providing us a bearish signal.
Also pair has given us death crossover of moving average where 50 EMA line has crossed up the 200 SMA line on hourly chart which is providing us a bearish signal. We will keep our view bearish on the pair as long as 2.0250 levels remain intact on a closing basis. Odds are favoring the bears and we will get further bullish confirmation below 1.9850 level.
On MACD indicator both signal line and MACD lines have been overlapped each other which are indicating that some selloff is expected and a bearish crossover is also favoring the bears. RSI is also holding the parity below 50 levels which is providing bearish signal and favoring the bears.Odds are in favor of bears and our bias remains bearish on the pair as long as 2.0250 level remains intact. The 1.9860 level is key support level followed by a 1.9800 level whereas 2.050 level is key support level followed by 2.02500 level.
Trade idea:- Based on the chart and studies above we would suggest selling the pair at 1.9950-80 for the target of 1.9860 and 1.9800 level with a very tight stop loss of 2.0150 level on a closing basis.
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