Overview:- Pair is falling from 2.1000 level continuously and arrived at 1.9045 where bears are doing their job in a good manner and taking the pair from 2.1000 level to 1.9050 level. Also, a downtrend line is still valid on the chart which is providing supply pressure to the pair. The way bears are reacting it seems like pair is testing the depth of the river and further downfall is still on the cards.
Technical Analysis:- From a technical perspective, pair has given us death crossover of moving average where 50 EMA line has crossed down the 200 SMA line which is providing us bearish signal and pair is trading already below the major and minor EMA lines. So some correction can’t be ruled out but every bounce should be taken as selling opportunity. We will keep our view bearish on the pair as long as 1.9500 levels remains intact on closing basis.
A downtrend line is lying on the daily chart which is providing us bearish signal and the way bears are reacting it seems like pair is still on the downside and targeting further downside targets of 1.8700 and 1.8500. On contrary, a valid breakout of 1.9500 with sustainability will open the way towards the 1.9800 and 1.20000 level.
On MACD indicator the both signal line and MACD lines have been overlapped each other which is indicating that some bounce is expected but this should be taken as selling opportunity. RSI also holding the parity below the oversold territory which means pair is not ready to bounce on a easy note.
What next:- Odds are in favor of bears and our bias remains bearish on the pair as long as 1.9500 level remains intact. The 1.9250 level is key resistance level followed by 1.9500 level whereas 1.9000 level is key support level followed by 1.8900 level.
Trade idea:- Based on the chart and studies above we would suggest sell the pair at 1.9080 for the target of 1.9000 and 1.8900 level with very tight stop loss of 1.9280 level.
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