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. By analysing at the daily chart, we can see that pair is making successively lower lows and lower highs where only bears are showing their full strength and they are doing so well and getting empowered at every lower level.
Technical Analysis: – From technical perspective 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. From technical perspective we can see that a head and shoulder price pattern has been formed which is providing us clearly sell signal as the neck line has been breached out which is signalling further downfall is still awaited. A downtrend line has been formed and bears are taking the full charge with full of bearish momentum. There is no confusion now, bears have indicated that they are going to be more aggressive in the upcoming sessions so just hold the short position and keep the stop loss.
Trade idea: – Based on chart and studies above we can suggest that sell the pair at CMP 1.1210 for the target of 1.1160 and 1.1100 with the tight stop loss of 1.1270.
