Oct 3, 2018
By observing the daily technical chart we can see that pair is making successively lower lows and lower highs by taking the balanced demand and supply from the downtrend channel.The bearish engulfing candlestick surviving below the previous swing’s low is generating bearish signal and it’s just a starting the further bearish storm is still expected.
The way bears are twisted back to south side it looks like they are in mood to provide the breakout of 1.2750 level in short term. A daily closing below this level will give us further bearish signal and it may test the 1.2500 level which is a key support level from intermediate term point of view. Well Odds are in favor of bears and intraday bias remains bearish on the pair as long as 1.2920 level.
By applying the fibonacci entrancement line from 1.2530 to 1.3380 level the pair has retraced almost 61.8% and presently trading below the 61.8% level which is generating bearish signal. The way bears are reacting it seems like they are approaching the 1.2500 level in short term.
The main eyes will be on FOMC announcements which will give the new direction to the pair. The RSI is also favoring the bearish sentiments from the negative territory. The MACD indicator is also generating bearish signal due to bearish crossover on the daily chart. The 1.2750 level is the key support level followed by 1.2700 level where as 1.3050 level is the key resistance level followed by 1.3000.