Overview:- By analyzing the daily technical chart we can see that earlier pair was heading north side and was making successively higher highs and higher lows where bulls were leading in the game and was playing at front foot. The pair has formed a rounding bottom pattern and completed successfully on the daily chart. But after arriving at 0.6732 level we have seen counter attack from bear’s side which converted all the bullish sentiments into bearish sentiments.
Well the way bears are reacting it seems like they are doing their best and heading south side and they may take the pair to 0.6250 level in near term. Overall pair is trading and sustaining in the downtrend whereas intermediate term trend is still bullish.
In our previous report also we mentioned to buy the pair at 0.6450 for the target of 0.6550 level and 0.6700 level with the stop loss of 0.6400 and we are expecting that our readers must have made profit from this move.
Technical Analysis: – Well the current picture dipicts that a short term downtrend line has been formed on the daily chart which is providing us bearish signal and overall pair is trading and sustaining below all the major and minor EMA line. Also, pair recently has given us downside breakout of 200 SMA line, which was a strong key support level on daily chart.
Well it’s an early call we will get further bearish confirmation once we see a daily closing below the 0.6450 level. This week’s closing matter a lot where if we see a daily closing below then we may expect that it will mark a new high and will break the previous resistance high.
A bearish crossover on the MACD indicator is still valid and indicates that pair may go on either side whereas RSI has just tested the oversold territory.
What Next:- The 0.6550 level is immediate key resistance level followed by 0.6600 level where as 0.6400 level can be considered as key support level followed by 0.6350 level. Odds are in favor of bears and intraday to weekly bias remains bearish on the pair.
Trade idea:- Based on chart and studies above we would suggest our traders and investors that go for short around 0.6490-85 level for the target of 0.6430 and 0.6400 with stop loss of 0.6560 level.
