The FOMC has fueled it further downside as pair was already in the downtrend and FOMC further added the bearish sentiments. Well we can see that massive bearish storm in the pair where bears are leading in the game and dominating the bulls at every nook and corner. Two consecutive bearish marabuzo candlesticks are there which are generating bearish signal and it seems like this blood bath is not going to stop in early phase.
Pair is already trading at multi year’s low and we are expecting it to fall further 1.0750 in coming time. Every swing is making successively higher highs and higher lows and getting downside pressure from a downtrend line. Overall pair is trading in the downtrend and was making successively lower lows and lower highs with every swing.
As we have mentioned in our previous report that short the pair around 1.1350 for the target of 1.1100 with the stop loss of 1.1420, we are expecting that our readers must have made profit from this move.
From technical prospective we can see that a head and shoulder price pattern has been formed on the chart and neck line has been breached out which means bears are taking the charge very soon with high voltage bearish momentum. Presently pair is again falling down and signaling further downside risk. The way bears are reacting it seems like they are approaching the 1.0750 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.
The parabolic SAR suggests the red dots on upper side which indicates that bears are in the game once again. Intraday bias remains bearish on the pair as long as 1.1170 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 multi year. Well it’s just a starting let’s see where bears will take the pair; we are expecting it to at least 1.0750 and furthermore. A daily closing below 1.1000 levels will open the way towards the south side.
Odds are in favor of bears. We will keep our bias as bearish on the pair as long as 1.1150 level remains. The pair could face the next support at 1.0950 ahead of 1.0750. On the upside, resistances align at 1.1150 and 1.1250. 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.