EUR/USD-Rounding Top Pattern Boosting The Bears.

May 24, 2018

 

EUR/USD has made fresh low of 2018 after optimistic stance of FOMC as FOMC says next rate hike will likely be soon and US dollar strengthens due to FOMC and Euro is unable to find the support against dollar. As we have mentioned in our last week report that sell this pair as long as US dollar getting strength. The pair is declining and heading towards south side. On technical ground, a rounding top pattern has been formed on daily chart and providig strenght to the bears, well the way bears are reacting it seems like they are approaching the 1.1500 level in short term.

 

On Wednesday we have seen a bearish marabuzo candlestick has been formed which is generating further bearish signal. The short term trend is down and we are not expecting any chase or counter attack from bulls. A small correction can’t be ruled out but that should be consider as selling opportunity as Sell on High is best strategy in downtrend. Overall pair is trading below all the major and minor EMA lines which is generating bearish signals.

 

 

If bulls are able to sustain above 84.50 level then we must say that it’s time to raise your buy position. We should keep our bias bullish as long as $82.00 level remains unbreached. The 82.00 level is the key support level followed by 80.00 level where as 86.00  level is the key resistance level followed by 87.00. RSI and MACD indicators both are generating bullish signal and supporting the buyers.

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