May 17, 2018 11:00 AM
Yesterday pair has tested the level of 1.1762 for the first time since December. It decline after the release of CPI data. Pair got downward pressure from the FED and ECB as divergence of Monetary policy.
For the time being pair is trading below the psychological level of 1.800 and marking a new low of year 2018. A valid breakout of this level and sustainability indicates further downfall till 1.1560 level. The way bears are treating it seems like they are approaching the 1.1560 level in short term. A rounding top pattern has been formed on the daily chart which is spreading the bearish sentiments. The other indicators are indicating oversold territory so we can’t ruled out the a bid correction but that correction should taken as selling opportunity.
Pair is trading below all the major and minor moving averages. The first landing at 1.1560 is awaited then buyer may do counter attack. Our bias remains bearish as long as 1.2000 level remains intact. The 1.1700 level is the key support level followed by 1.1560 level where as 1.1924 level is the key resistance level followed by 1.2000.