Overview: – By analyzing the daily technical chart we can see that from last couple of days bears are playing at the front foot and started to dominate the bulls. Yesterday bears decline from 1.7158 level to 1.6990 level and today from morning session itself pair is falling down and arrived at 1.6945 level which is below all the major and minor EMA lines.
Technical Analysis:- From a technical perspective, we can see that a double top pattern has been posted on the daily chart which is providing us bearish signal at an initial stage, however we will get further bearish signal below the 1.6900 level. A daily closing below the mentioned level will open the way towards the 1.6800 and 1.6700 level and furthermore in near term. Overall pair is trading and sustaining below the EMA a line which is providing a bearish signal itself.
We will keep our view bearish on the pair as long as it is trading below the downtrend line and odds are in favor of bears. RSI arrived in the negative territory below 50 level which is favoring the bears and a bearish crossover on the MACD indicator is on the cards which is the recent development on the daily charts.
What Next:-. The pair could face the next support at 1.6900 ahead of 1.6800. On the upside, resistances align at 1.7050 and 1.7200
Trade idea:- Based on the chart and study above we can suggest to our readers that sell at 1.6955-60 for the target of 1.6870 and 1.6800 with a tight stop loss of 1.7180 level.
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