Overview: – By analyzing the daily technical chart we can see that after the tug of war bears got the charge and headed towards south side. Yesterday we have seen a bearish marabuzo candlestick which is providing us bearish signal, the yesterday’s downfall has cleared the picture and created the chances of further downfall 90.10. 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 analyzing 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 signaling 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 91.10 for the target of 90.70 and 90.30 with the tight stop loss of 91.70.
