Overview:- By looking at the daily chart we can see that pair is heading towards south side after testing the downtrend line or upper line of downtrend channel line. The price action on the daily chart seems like no more buying sentiments in the pair and it’s time to short the pair once again where bulls did their job already with a fabulous bounce is the eyewitness of their courage. But now it seems like bulls are unable to take the pair further upside and denied to go up further.
Well it’s perfect time to enter in the short position in the pair, where bulls and bears are doing their best job and it looks like bulls have hand over the ride to bears. Now it’s bear’s choice that where they want to take it.
The bulls have become exhausted now as we can witness on the chart that bulls are no more interested to move up and pair is now trying to head south side which is a recent development on the chart. The overall picture looks mildly bearish and updating the sign of trend reversal.
Odds are in favor of bears. Intraday bias remains bearish on the pair. The short term to intermediate picture is bullish. Short term to intermediate term trend is up so in a uptrend market, buy on dips will be profitable strategy.
Technical Analysis: – By applying the trend lines we can see that pair is receiving downside pressure from the channel and 2162 level are the most awaited target of bears which will be achieved like a cake walk. A daily closing below this level will open the way towards the 2169 level also in future.
The RSI indicator is favoring the bears from the positive territory whereas on the MACD indicator is also supporting the sellers on the hourly chart which is a recent development. The 2124 is key support level followed by 2039 where 2220 is key resistance level followed by 2240 level.
Trade idea:– based on chart and studies above we can say that one can go for sell at 2167 level target is 2150 and 2140 level with the tight stop loss of 2190 level.
