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 bearish marabuzo 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 way bears are reacting it seems like they are approaching the 1.0590 region.
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. 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. Short term buying can’t be ignored but that could be an opportunity to sell further.
Recently it has breached the strong support of 1.0590 level which indicates that bears will move further downside and heading to south side. Well the next approachable target of bears is 1.0532 level from positional point of view.
Trade Idea: based on the chart and above studies we would be recommending to our traders that go for sell at 1.0630 targets is 1.0580, 1.0530 Sl is 1.0690.
