May 24, 2018
Pair has made a fresh low of 2018 as Solid JPY demand has occurred whereas PMI in Germany was disappointing and EMU helped with EUR selling. Pair is making successively lower lows and lower highs and we can see complete blood bath on the chart. The three black crow candlestick pattern has been posted on the daily chart which is signaling that bears are not in mood to take rest.
From short term point of view we can observe that Head & Shoulder pattern has been formed and yesterday its neck line has been breached out which is just a trailer further picture is still due. The bears are dominating the bulls at every nock and corner and it seems like they are dancing and are in party mood. Well this is clear sweep/sell off where every trader and investor should go for short position. Our daily to weekly bias remains bearish as long as 131.30 level remains undamaged.
Pair is trading below all the major and minor EMA lines which is providing bearish signal. RSI indicator is travelling at oversold territory so we may see some correction but that should be considered as selling opportunity and MACD crossover is generating bearish signal. The 126.71 level is key resistance level followed by 125.00 whereas 130.11 is key support level followed by 131.30 level.