July 2 , 2018
Daily chart analysis indicates that earlier bears were driving the car and seating at the front seat but after arriving at 1.1500 level it bounced back to 1.1843 level with very sharp ‘V’ shape recovery but bulls again could not manage their self and pair slipped to 1.1500 level once again and presently pair is trading at 1.1660 level. It seems like both bulls and bears are fighting and trying to take it at their own side but no one is getting advantage.
Well after a strong downfall some profit booking is expected and maybe we are witnessing that profit booking or it can be a trend reversal also so we will get further confirmation once pair trade and settles above the 1.1843 level. Traders and investors both are advised to wait for the breakout on either side i.e. sell below 1.1500 level or buy above 1.1850 level. Odds are in favor of bears. We will keep our bias as bearish on the pair as long as 1.1850 level remains.
A political crisis for Germany raises questions about Merkel’s position, and indeed Germany’s Economy Minister Altmaier suggests that the coalition is in a ‘serious’ condition while German regional elections will not be until October. Meanwhile, the euro’s selloff is unable to really pick up momentum because Seehofer’s resignation is not yet a done deal.
The short term to intermediate term trend is down so in a downtrend market always sell on rise would be profitable strategy. A bearish crossover on MACD indicator is favoring the bears and providing us bearish signal for the time being. On contrary RSI arrived in the oversold zone which indicates a bid bounce back from the bull’s side, well there is nothing to be worried that bounce should be considered as fresh sell position. The 1.1850 level is immediate resistance level followed by 1.2000 whereas 1.1430 level is strong key support level followed by 1.1300 level.
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