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 perspective we can see that a head and shoulder pattern which is providing us bearish signal and pair is trading below all the major and minor EMA lines. A downtrend line has been formed and bears are taking the full charge with full of bearish momentum. The pair is trading below all the major and minor EMA lines which indicate that bears dominating the bulls at every level. 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.
Overall pair is trading and sustaining below the moving average lines which is providing us sell signal. A bearish crossover on MACD indicator is providing us bullish signal and RSI started to decline below 50, which is providing us bearish signal.
Trade idea: – Based on chart and studies above we can suggest that sell the pair at CMP 167.40 for the target of 167.00 and 166.50 with the tight stop loss of 167.90.
