Overview:-Well the bears were already leading in the game and yesterday they proved their self by posting a strong bearish marabuzo candlestick on the daily technical chart which indicates that bears are in party mood and testing the depth of the river. As we can see that pair is heading south side with full of bearish momentum and it is hanging down below the moving average lines.
Technical Analysis:- From technical prospective we can see that a double top pattern with the slope of rounding top pattern has been posted which is providing us bearish signal and pair is trading below all the major and minor EMA lines.
A very balanced supply pressure on the daily chart is indicating that pair will defiantly test the 1.6000 level. Bears are taking the control on the pair and playing at the front foot, the way bears are reacting it seems like they are approaching the 1.6000 level. Recently it marked a low of 1.6162 and bounced back to 1.6220.Odds are in favor of bears. Intraday bias remains bearish on the pair. The MACD indicator is also favoring the bears and still providing us bearish crossover. RSI is providing bearish signal from negative territory. The 1.6210 level is immediate resistance level followed by 1.6270 whereas 1.6160 levels is strong key support level followed by 1.6000 level. A valid breakout of the 1.6270 level will give us trend reversal signal and we may see buying as long as this levels remains intact go for short.
Trade idea:- The present picture suggests us that sell at the current levels i.e. 1.6195-1.6200 for the target of 1.6000 with the tight stop loss of 1.6270 level
