Overview:- By analyzing the daily technical chart we can see that after the tug of war bears got the charge and headed towards south side. Yesterday we have seen a bearish marabuzo candlestick which is providing us bearish signal, the yesterday’s downfall has cleared the picture and created the chances of further downfall 1.7000.
As we have mentioned earlier also that the pair is trading and sustaining between the narrow ranges of 1.7600 to 1.7300 level which indicates that breakout on either side will give us new buy or sell signal. If bulls able to give close above 1.7600 level then it will open the way towards the 1.6100 and 1.6000 is the extreme level which can be tested by bulls on contrary if bulls trades and sustain below the 1.7400 level then it will open the way towards 1.7000 level and furthermore, however there is high chances that we may see downside momentum.
Technical Analysis:- Pair is moving below the minor EMA lines (9,14 and 50) and candles are also providing us bearish signal. This week’s closing matters a lot. The bearish crossover on MACD indicator is still intact and providing us bearish signal RSI has turned down to below 50 level which is showing weakness in the pair. The primary trend is still bearish and secondary trend is also flashing sell signal after a correction.
Trade idea:- Based on chart and studies above we can suggest that sell the pair below 1.7400 target is 1.7000 and 1.6900 sl is 1.7650 level
