By looking at the daily chart of the pair we can see that a very balanced demand and supply is going on between the downtrend channel lines where every swing is making successively lower lows and lower highs and in the last week pair has arrived at multi year’s low of 1.1109 i.e. low of June 2017.
Bears are dominating the bulls at every level and not providing any chance to bulls even every bounce or correction should be taken as selling opportunity for bears. Presently pair is trading and surviving below the moving average lines which is providing us bearish signal.
A downtrend channel line is providing strength to the bears and generating bearish signal. The recent candle is a shooting start followed by a big bearish marabuzo candlestick which is indicating that bears are leading and playing at front foot and we may see further bearish storm in near future. The short term to intermediate term trend is down so in a downtrend market sell of high will be profitable strategy.
A daily closing below 1.1100 level will open the way towards the 1.1000 in the coming trade sessions. Well the traders and investors are advised to have short position at the current level i.e. 1.11753 further add your short position till 1.12000 level with the strict loss of 1.12680 level.
Odds are in favor of bears. We will keep our bias as bearish on the pair as long as 1.1300 level remains intact. The pair could face the next support at 1.1100 ahead of 1.1000. On the upside, resistances align at 1.1250 and 1.1300. A bearish crossover on MACD indicator is favoring the bears and providing us bearish signal for the time being. RSI arrived in the negative territory i.e. below 50 level, which is supporting the bears.