Overview:- All the Forex pairs have become volatile now but this pair is showing extraordinary moves on the daily technical chart. The pair has reversed from the key resistance level of 1.6610 level where 200 SMA line is lying. The way bears got sudden supply on the pair it seems like pair has started its downside journey in a good manner and now it’s time to accumulate the pair for big targets and stop-loss is minimum for positional traders. ‘
Currently, pair is moving downside and showing bearish momentum is going to continue now the question arise that is it a trend reversal or just profit booking is going on ? and the answer is its trend reversal signal at an initial phase and we will get clear confirmation below 1.6250 with daily closing.
In our previous report also we mentioned selling the pair at 1.6600 targets is 1.6500 and 1.6400 and our both targets have been achieved so we are expecting that our readers must have made a profit from this move.
Technical Analysis:-
On 4 hourly and 8 hourly chart pair is trading and moving below all the minor EMA lines and a perfect rounding top pattern is in process of formation and we will get further clear confirmation below the 1.6250 level. On 4 hourly chart pair is flashing clearly downside signal and it seems like
On 4 hourly chart, a bearish crossover on the MACD indicator is the recent development and providing us a bearish signal. RSI is moving below the 50 levels which is favoring the bears. Overall all the set up is indicating that further downside momentum is on the cards and better to have a sell position for the time being. Odds are in favor of bears and intraday to weekly bias remains bearish on the pair as long as 1.6600 levels remain intact.
What next:-. The 1.6220 is immediate support level followed by 1.6150 level whereas 1.6500 level is immediate resistance level followed by 1.6600.
Trade idea: Based on the chart and studies above we can say that sell pair at 1.6340-50 target is 1.6250 and 1.6100 with the stop loss of 1.6470.
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