June 8 , 2018
Earlier bulls were heading north side aggresively but after arriving at 1.0054 level it tumbled down as we have seen strong counter attack from bears due to potential double top pattern. The 1.0054 level was a strong key resistance level so some supply was already expected but twisted back to 0.9808 level which is a multi weeks low.
A sharp delcine in the daily chart did not give the time to bulls for manage theirself. Presently pair is trading below all the major and minor moving averages and heading south side. Odds are in favor of bears and we will keep our bias bearish on the pair as long as 0.9900 level remains intact. The way bears are reacting it seems like they are in celebration mood and they are not going to take any rest. The 0.9750 level is seems as next desination for bears and if bears manage to settle below that level then we may see further blood bath in the pair.
The primary reason behind the USD weakness seems to be the rising expectations of the ECB announcing a QE exit strategy next week. US 10-year T-bond yields continue to fall. The US Dollar Index remains below mid-93s.
A clear bearish breakout on MACD indicator is also favoring the bears and generating bearish signal. RSI is also supporting the bears from the negative territory. The 0.9900 level could be seen as immediate resistance level followed by 0.9950 level whereas 0.9750 level is strong key support level followed by 0.9700.
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