Weekly Trend Direction: Bearish
Weekly Trend Reversal Level: 0.8880
Key Support Levels: 0.8650, 0.8600, 0.8530, 0.8430
Key Resistance Levels: 0.8880, 0.9000, 0.9100
Entry Strategy: Selling Rallies in downtrend.
Trade Suggestion: This week we had a bearish close on this pair on weekly chart and on daily chart it formed a doji and a bearish candle on friday closing, which signifies bearishness. This pair made a corrective run up last week and was not able to break above 0.8880 , which is our sited resistance level last week and also it is 61.8 fib level fall from 0.9381 to 0.8058. This pair failed to break 0.8880 level at which daily bearish trendline came in. So over all it tells us it is now under bears pressure. We could see significant downside extension on this pair this week. If we look at weekly charts, we have a bearish flag formation, which is continuation of downtrend. We have megaphone pattern on weekly chart as well continuing, which is bearish as well. If we look at daily charts, we have a reversal candles formed at 0.8880 level ( which is 61.8 fib level ) , which signifies the downward extension on this pair. The breach of the bullish channel on daily chart will make this pair extend much lower. It has significant support at 0.8500 level. We will stay bearish on this pair and look to target 0.8300 , 0.8100 & 0.8000.
Alternate suggestion: Any breach of our suggested weekly trend reversal level will open up doors targeting towards 0.8900, 0.9000 & 0.9100.