The cross edged lower after a strong closure on Friday’s session. In the daily chart, the cross fell and closed below all daily moving averages. In
April, 200Dema and 200Dsma twice gave enough support to the cross to made a high at 92.36. But in May, the cross breached the same levels twice. Today, at the Asian session, the cross fell below the last bullish support at 88.71 trading at 88.69. In the weekly chart, the cross fell below 20 & 50 Wsma. Bulls found support at 88.18 and 87.27. In the daily chart, we can observe inverse head and shoulder pattern formation, right hand shoulder is found at 87.27. The real panic will ignite towards 86.10 100wsma, 85.56 100Wema, and the previous swing low at 84.00. The new fresh week started on a bearish note opened at 89.70. The weekly trading pattern is framed between 87.27 and 89.80.
Intraday: The cross is trading below the support at 88.71, the next major support is seen at 88.50/88.45 161.8,4HFE. We expect the cross to touch 88.20,88.00, and 87.85. We recommend fresh intraday selling only below 88.40 with targets at 88.20 and 88.00.
Resistance: 89.20, 89.72, 89.80
Support: 88.45, 88.20,87.85
The material has been provided by InstaForex Company – www.instaforex.com