General Overview: – 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. The pair is trading below all the major and minor EMA lines which indicate that bears dominating the bulls at every level.
Technical Overview: – 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. 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 89.60 for the target of 89.10 and 88.60 with the tight stop loss of 90.20.
