Overview:– The pair has become has more convincing to sell once again as we can see that a steep downfall followed by a pull back, all this set up is just for short the pair as we know that in the downtrend market sell on high will be profitable strategy. A massive bearish storm on the daily chart indicates that bears are leading in the game and playing at their front foot. The bears are dominating the bears at every nook and corner, and the hope for further bearish sentiments is increasing by leaps and bounds.
Fundamental Analysis:- Pair could not manage itself and fall down after a proxy to trade war headlines, has dumped on the latest trade headlines which confirm that the trade talks this week were doomed to fail from the get-go. There has been an evolving story leading into the trade talks this week with growing skepticism, especially in overnight trade following a series of conflicting headlines. The latest, of which, has come in early Asia and set the scene for a risk-off end to the week and foreseeable future in global financial and commodity markets.
Technical Analysis:- From technical prospective we can see that pair is receiving the supply pressure from the 200 SMA line which is providing us bearish signal and a recent bearish marabuzo line below all the major and minor EMA lines. which is providing us further bearish signal. Odds are in favor of bears and intraday bias remains bearish on the pair as long as 0.6900 level remains intact.
Overall pair is heading towards south side with the formation of three consecutive bearish candlestick price pattern first one is bearish marabuzo and next two are seems as shooting star and it’s a very strong bearish pattern. The way bears are reacting it seems like they are again leading in the game and heading to 0.6680 level which is a strong support level. An intermediate downtrend line is still valid on the daily chart which indicates that bears are falling down to retest this mentioned down side levels. Overall pair is trading below all the major and minor EMA lines.
A bearish crossover on the MACD crossover is verifying this downside move and RSI is also falling down below 50 level which is providing us bearish signal. Red dots on parabolic SAR are favoring the bears and the expansion mode of Bollinger band which is showing downside risk.
What next:- On weekly chart the last week was the fabulous week as we can see a bearish engulfing candlestick has been posted on the chart which is a very strong trend reversal candlestick and this week also bears are leading in the game well it’s just a starting further selling is still on the cards.
Odds are in favor of bears. Intraday bias remains bearish on the pair as long as pair is sustaining below the 0.6900 level. The 0.6680 level is the key support level followed by 0.6650 level where as 0.6850 level is the key resistance level followed by 0.6900.
Trade idea:- Based on chart and studies above we can suggest that sell at 0.6800 target is 0.6720 and 0.6650 with the tight stop loss of 0.6860
