By looking at the daily chart we can see that pair is falling down and making successively lower lows and lower highs and heading towards south side. As we have mentioned in our previous report that pair has topped out with double top formation we are expecting that traders must have made smart profit from this move.
Pair is trading in completely downtrend and sustaining below the moving average lines which is signalling that further selloff is still awaited till the 0.8400 level which seems as unfinished target of bears. Three bearish marabuzo candlesticks are generating bearish signal and providing us bearish signal.
The bears are dominating the bulls at every nook & corner and an uptrend line on the daily chart has been breached out, which is providing strenght to the bears from psychological prospective. From technical prospective we can observe that a dwontrend line is also lying on the daily chart and a double top price pattern has been formed on the chart . The way bears have snatched the bite from bull’s mouth and bears are dominating the bulls it seems like bears are approaching the 0.8650 level in short term.
Odds are in favor of bears and we will keep our bias bearish on the pair as long as 0.8700 level remains intact. The bears are controlling the game for the time being and it does not seems that they are going to lose grip from the market.Bears are most likely to test the 0.8400 and 0.8300 level and then we can expect that bears may go for some rest. A bearish crossover on MACD indicator is supporting the bears.RSI is also favoring the bears from negative territory. The 0.8700 level is a key resistance level followed by 0.8800 level whereas 0.8400 is a key support level followed by 0.8300 level.