- October 29, 2020
- Posted by: cabana-admin
- Category: Forex Broker
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
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