Overview: By analyzing the daily technical chart we can see that pair is trading and moving in a downtrend as a downtrend channel has occurred on the chart which is providing us a bearish signal on the chart. In last couple of days, we can see that the pair has been falling down with lots of negativity in the market. Rallies at this point in time should continue to be selling opportunities. The currency pair is trading largely unchanged on the day near 104.45. Technical charts suggest scope for deeper declines. The charts showing its bearish side as the market mood is sour today. The technically bearish in the near term, as it is trading near its monthly low at 104.33. On the daily chart, the pair is forming its triple bottom in the market is showing a bearish pattern that marks downside support breaks level 104.169. The bears are going 104.24 level. The pair is also making its bearish triangle pattern which provides an extension to an existing downward trend, it’s an initial strong direction move down.
Technical Analysis: From a technical point of view, we can see the market is moving in a downtrend channel and every swing is making successively lower lows and lower highs by getting supply pressure from the upper resistance line and getting demand pressure from the lower demand line. A bearish marabuzo candlestick on hourly along with 4 hourly charts is generating bearish signal but after a steep downfall, some correction can’t be ruled out. The 103.70 is next support level followed by 103.10 level whereas 105.10 is key resistance level followed by 105.80 level. The RSI is below the 50 level showing bearishness in the market. The MACD indicator is also showing a strong bearish crossover.
Trade idea: Based on the chart and studies above we would recommend that sell the pair at 104.50-60 target is 103.60 and 103.10 stop loss is 105.30
Disclaimer: This is to be considered a marketing communication only, this does not contain, and should not be construed as containing, investment advice or an investment recommendation or investment research or, a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instruments. Past performance is not a guarantee of or prediction of future performance. Cabana Capitals does not take into account your personal investment objectives or financial situation. Cabana Capitals makes no representation and assumes no liability as to the accuracy or completeness of the information provided, nor any loss arising from any investment based on a recommendation, forecast, or other information supplied by an employee of Cabana Capitals, a third party or otherwise. Consequently, any person acting on it does so entirely at their own risk. This material has not been prepared in accordance with legal requirements promoting the independence of investment research and it is not subject to any prohibition on dealing ahead of the dissemination of investment research. All expressions of opinion are subject to change without notice. Any opinions made may be personal to the author and may not reflect the opinions of Cabana Capitals. This communication must not be reproduced or further distributed without prior permission.
