May 29, 2018
Well pair is making successively lower lows and lower highs on daily and weekly basis which indicates that bears are dominating the bulls at every nook and corner. The way bears are reacting we can see a strong selloff on the pair and there is no change to buy or to hold. It’s an fabulous opportunity to sell the pair as bears are driving the car and accelerating towards south side. Yesterday pair has made fresh low of year 2018 i.e.1.16068.
Today, the US releases CB Consumer Confidence, which is expected to dip to 128.7 points. During the absence of USD the EURO had shown the weakness as geopolitical factors are pushing it downside like headlines from Italy and Spain. Italian PM faces election call on the back of a corruption scandal. The pair is heading south due to stronger USD and weak EURO , well USD is likely to remain stronger for next 2-3 months as US interest rate are hiked between 2-3 times.
The way bears are reacting it seems that they are approching the 1.15501 level so further sell off is still due and traders & investors are advised to short the pair. Overall pair is trading below all the major and minor EMA lines which is generating bearish signals. A downtrend line is still existing on the daily chart which is generating bearish sentiments. A rounding top pattern has been formed on the daily chart which is a bearish price pattern and generates bearish sentiments.
Intraday to weekly bias remains bearish as long as 1.1750 level remains unbreached. The 1.1500 level is the key support level followed by 1.1450 level where as 1.1750 level is the key resistance level followed by 1.1800. RSI and MACD indicators both are generating bearish signal from the oversold territory so we may see some correction but this correction should be taken as selling opportunity.