Overview: – Well pair is falling down consistently from last couple of weeks and it slipped from 1.2250 and yesterday it marked a low of 1.0470 level.. We can see the bearish sentiments and pair is heading towards south side. Well the way bears are reacting it seems like they are approaching the 1.0470 level once again in near term. Overall bears are leading and taking the charge with full of bearish momentum or we can say that bears are driving the car and heading towards south side.
Technical Analysis:- From technical prospective we can see that pair has breached out all the moving average and sustaining below the lines. A downtrend line has been lying and pair is trading below the downtrend line. Odds are in favor of bears and intraday bias remains bearish on the pair as long as 1.0470 level remains intact.
Well there was a fabulous selling from 1.0470 level to 1.0420 level and there is no hope for bulls. It’s just a starting further selling is still awaited and we may see panic selling once again if bears are able to break the 0.9600 level and provides daily closing below this level then we may see strong selling. RSI is entering in the oversold territory so we may see some correction but that should be another opportunity to sell again which is also favoring the bears and suggesting that bears may lead further. A bearish crossover on the MACD indicator occurred which indicates that now bears will play at the front foot again and will dominate the bulls.
Trade idea:- Based on the chart and study above we can suggest go for short at current levels 1.0470 for the target of 1.0400 and 1.0300 stop loss is 1.0660
