As per our recent anticipation, the hammer pattern at the bottom of downtrend at around 165.927 on daily chart, has evidenced a relief for interim bulls to reach our short term targets 169.194.
We continue to foresee further bearish travel from here onwards. It has already dropped to 163.98 thereby, it has reached our previous 1st target at 165 and is close to 2ndtargets at 163.500.
With all leading as well lagging indicators to converge these price slumps on monthly chart we position our bearish stance in sync with market sentiments.
Long term trend has been extremely conducive for bears as we listed out series of red flags that signifies serious weakness in this pair but bulls can also be favored with these short term rallies but keep mind that any point of time it may reverse its bearish strength and resume bearish business.
Well, we've been uttering for shorts in this pair from last 4 months, it has travelled almost that's been a history now.
No harm for bears with medium term trade setups as lagging indicators are pretty much the same as leading indicators, MACD and 21DMA has still been a sell both on weekly and monthly graphs. The prices have slid below 21DMA just a month ago on monthly chart that has created more room for ongoing bearish trend.
Huge volumes conformity to the steep slumps has been booster for this bearish trend, what else do we need more than this? rising volumes with consistent falling price would reveal what is cooking in this pair.
Thereby, for now an we still maintain the targets at 165.00 and even at 163.50 levels are pretty much on the table upon holding the above stated resistance levels. For fresh shorts wait for the rallies for an ideal entry points.
Comments
Marvin
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Ok, fair enough. Thanks mate. I really like your analysis and follow you with interest. Good luck to you.
Marvin
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I'm a little confused. Only 2 hours prior to posting this idea you posted and idea whereby you seemed to be bullish on this pair.
FxWirePro
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Hii that is for intraday . We have used one hour chart in that. This report is for long term.