Written By:- Harish Shahi, Sr. Commodity and Forex Analyst
In the first look of daily technical chart of the pair one can see that pair is heading towards south side. Presently pair is trading and sustaining below the moving average which is providing us bearish signal. Pair is making successively lower lows and lower highs on the daily chart and bears are dominating the bulls. In the last month we have mentioned in our previous report that all the preparation has done for downside and we proved it. The way pair is falling down with the formation of rounding top pattern it seems like bears are approaching the 1.1200 level which is a psychological level.
Pair is sustaining below the moving average lines and three big bearish marabuzo candlesticks are forming the pattern of three black crows on the daily technical chart which is generating totally bearish signal. The short term to intermediate term trend is down so in a downtrend market sell on high will be profitable strategy. We will keep our bias bearish on the pair as long as 1.1400 levels remains intact.
A downtrend line is also posted on the daily chart which is providing downside pressure to the bears and the way bears are reacting it seems like they are driving the car and they are in party mood. A downside flow is too strong and seems like bears are not ready to stop in an early phase.
Odds are in favor of bears. Intraday bias remains bearish on the pair and we will get further bearish confirmation once pair trade and settles below 1.1260 level. A bearish crossover on MACD indicator is favoring the bears and providing trend reversal signal for the time being and RSI is also providing bearish signal from negative territory however, some correction can’t ruled out even that should be consider as further selling opportunity. The 1.1400 level is immediate resistance level followed by 1.1500 whereas 1.1200 levels is strong key support level followed by 1.1150 level.