Overview:- Bears are doing so well and dominating the bulls at every level and heading south side, pair is falling down from 1.9692 level continuously and arrived at 1.9332 where bears did their job in a good manner and breached the 1.9400 level which is a strong key support level. The way bears are falling down it seems like they are approaching the 1.9200 level and further downfall is still awaited.
Technical Analysis: – From a technical perspective a downtrend line is lying and providing us bearish signal. On hourly chart and 4 hourly chart pair is trading and moving below all the major and minor EMA lines which is providing us 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 bearish signal. We will keep our view bearish on the pair as long as 1.9500 levels remains intact on closing basis. Odds are favoring the bears and we will get further bears confirmation below 1.9250 level.
On MACD indicator the 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 us bearish signal and favoring the bears .Odds are in favor of bears and our bias remains bearish on the pair as long as 1.9450 level remains intact. The 1.9250 level is key support level followed by 1.9200 level whereas 1.9400 level is key resistance level followed by 1.9450 level.
Trade idea:- Based on the chart and studies above we would suggest sell the pair at 1.9340-50 for the target of 1.9280 and 1.9220 level with very tight stop loss of 1.9400 level on closing basis.
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