General overview: EURUSD’s daily chart shows a bearish trend. The pair risks extending the recent decline from 1.2200 level. The pair shows a recent breakdown from the bullish trend as the market again shows a major decline in the market. Tuesday’s candle carries a long lower wick, a sign of seller fatigue. The chart shows major downward side momentum in the market. As such pair start creating lots of negative volatility this time. The class takes its strong side towards the seller side in the market. The market shows its whole momentum towards the low side in the market. The sellers make their whole momentum towards the low side in the market. The pair breakout at a certain level and start falling below the 1.2138 level.
Technical Analysis: Technically we can say that market travels towards the sell-side in the market. we can say on the daily chart market makes the head and shoulder pattern and find the neckline breakout level at level 1.2062 level and start moving downwards slope in the market. The odds are in favor of the market and creating the confirmed sell signals in the market. On the 4 hourly charts, the market-making bearish candlestick on the chart as the major SMA lines are rising above the minor EMA lines and confirms more bearish signals in the market. The indicators are also making bearish signals in the market. RSI also travels below the 50 level which creates the sell signals and MACD also travels below the zero lines and creates the sell signals in the market. The support level of the market is 1.1942 followed by 1.1842 and resistance will be 1.2142 followed by 1.2242.
Trade idea: Traders are advised to go for sell at level 1.2043 and the target will be 1.1980- 1.1920 and stop loss will be 1.2120.
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