EUR/USD: Bears are looking are downside momentums.
- EUR/USD has tumbled down in response to a trio of upbeat US figures and taper speculation.
- All eyes are on US Nonfarm Payrolls, which could fall short of elevated estimates.
Overview: By looking at the daily chart we can see that sellers are showing their potential in the market . The market is showing downside momentum in the market . From the technical prospective , The market is previously formed shooting star which cause market to fall, the swings are making successively lower lows and lower highs ,In the chart hourly chart bears are showing their strong side in the market . The story of April’s Nonfarm Payrolls may repeat itself in May, at least for the US dollar. The greenback has been benefiting from robust US data pointing to accelerating job gains and also a pickup in inflation. The way bears are reacting it seems like they are approaching the 1.1860 region. The way bulls reacting it seems like they are trying to arrive at 1.2050 level.
Technical Analysis: From the technical view we can see that market is going in downtrend which is providing us bearish signals level bears will get more aggressive. On the 4 hourly chart is formed head and shoulder pattern which cause pair to lose its volatility in the market. The pair is trading below all the major and minor EMA line which is provides us bearish signals. The odds are in favors of bears so it’s better to keep eye on the sell side. Euro/dollar is suffering from downside momentum on the four-hour chart and has dropped below the 200 Simple Moving Average. However, the Relative Strength Index is nearing the 30 mark, and falling below that level would put the pair in oversold territory. The major support level is 1.2050 followed by 1.2000 and the resistance is 1.2150 followed by 1.2200.
Trade Idea: based on the chart and above studies we would be recommend to our traders that go for sell at 1.2106 target is 1.2060,1.2000 Sl is 1.2160.
