Overview:- By looking at the daily chart we can see that bears are rocking and it seems like they are in party mood. The pair has topped out and shown a sharp free fall from 1.9415 to 1.8950 level without any hurdle. Well it is just a starting we may see further selling in the pair till 1.8130 level which is low of sep 2022, presently pair is trading at multi year’s low.
Technical Analysis :- From technical prospective we can see that the pair has breached a strong key support level of 1.8500 and given daily closing below the mentioned breakout level which has created further weakness in the pair.
The primary trend is down and secondary trend is also down so in a downtrend market always sell on high will be profitable strategy. The pair has given weekly closing very negative i.e. bearish marabuzo candlestick this week although previous weekly candle was also bearish marabuzo candlestick from where we are receiving down side signal and a downtrend line is also lying on the chart which is proviidng us sell signal. . The pair was making successively lower lows and lower highs. The MACD indicator is showing the bearish crossover which is a recent development on the daily chart whereas RSI turned back to downside from oversold territory.
What Next:– The way bears have snatched the bite from bull’s mouth and bears are dominating the bulls it seems like bears are approaching the 1.8500 level in short term. Odds are in favor of bears and we will keep our bias bearish on the pair as long as 1.8200 level remains intact on closing basis. The 1.8000 level is immediate resistance level followed by 1.9180 level whereas the 1.9450 .
Trade idea:- Based on chart and studies above we can suggest to our traders and investors that go for short at 1.8930 level for the target of 1.8500 and 1.8300 level with the tight stop loss of 0.9450 level.
