July 5 , 2018
By looking at the daily chart we can see that pair is trading in a downtrend channel which is generating bearish signal and it is making successively lower lows and lower highs i.e. it’s hovering at 1 year’s fresh low of 1.7309 level. Risk-related sentiment linked to the trade war will set the tone from now on.
The current formation on the chart indicates that some correction is expected for sure because we may witness that previous 3 swings has formed in the same manner and this time also a potential rounding bottom pattern is forming to test the downtrend line which suggests that pair will move up before further falling.The ways pair is behaving on the chart it seems like the short term to medium term trend is down. Odds are in favor of bears but intraday bias remains bullish on pair as pair will go up to retest the downtrend line.
From technical prospective we can see that a downtrend line is forming on the daily chart which indicates that it will go down towards the south side. The 0.7309 level is a strong support level and a valid breakout of this level will open the way towards the 0.7200 level in short term. This breakout is expected as bears have taken the charge and it seems like they are not ready to take any kind of rest for the time being.
A bullish crossover on MACD indicator is favoring the bulls for the time being and providing bullish signal for the time being and RSI is also supporting the bulls for the correction from oversold territory.. The 0.7500 level is immediate resistance level followed by 0.7600 whereas 0.7227 levels is strong key support level followed by 0.7150 levels.
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