July 13 , 2018
Overall pair is falling down from 1.4376 level to 1.3048 level continuously and pair is making successively lower lows and lower highs on the daily chart. Well pair is heading towards south side and it is a purely downtrend in the pair, however earlier they were falling down with an increasing rate but now they are falling down with decreasing rate.
By applying the Elliot wave theory pair is travelling in the second leg which is a corrective wave so further downside pressure is still expected, On the other side, in the daily chart we can see that the pair has shown buying interest but that was limited as pair is still hovering below the moving average lines. We can observe that after a steep downfall some profit booking was expected due to dollar weakness. Overall short term to intermediate term trend is down so in a downtrend market sell on high will be profitable strategy.
Bears are still taking the charge and the way bears are reacting it seems like they are still showing their presence in the pair and will test the 1.3000 level in very short term. A correction after a downfall is a healthy sign for trend formation. We will keep our bias as bearish on the pair as long as 1.3500 level remains intact as & odds are in favor of bears.
RSI along with MACD indicator both are providing us bearish signal for the time being and will support further once pair will fall further . The 1.3450 level is immediate resistance level followed by 1.3550 whereas 1.3010 level is strong key support level followed by 1.2950 level.