Written By:- Harish Shahi, Sr. Commodity & Forex Analyst
By looking at the daily technical chart we can see that pair is heading south side once again. Overall pair is trading in the downtrend and was making successively lower lows and lower highs with every swing. But in the mid we have see a rally or counter attack from bulls but that was considered as profit booking. Well after arriving at the 1.1400 level when everything was in favor of bulls but bulls could not sustain it and was unable to make it as further buying opportunity it slipped to 1.1300 level.
Presently pair is again falling down and signaling further downside risk. The way bears are reacting it seems like they are approaching the 1.1100 level in this week. Overall pair is trading and sustaining below the moving average line which is favoring the bears and generating bearish signal on the chart.
Intraday bias remains bearish on the pair as long as 1.1300 level remains intact. The way bears are reacting it seems like bears are leading in the game they will mark a new low of the year. Well it’s just a starting let’s see where bears will take the pair; we are expecting it to at least 1.1100 and furthermore. A daily closing below 1.1200 levels will open the way towards the south side. The recent candle on the chart is bearish marabuzo candlestick which is generating bearish signal for the time being.
Odds are in favor of bears. We will keep our bias as bearish on the pair as long as 1.1300 level remains. The pair could face the next support at 1.1100 ahead of 1.1050. On the upside, resistances align at 1.1300 and 1.1350. 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.