Skandinaviska Enskilda Banken estimated the real bearish target for this pair as 1.0481 in the near future with stated that the price will be moved to 1.05/1.04 area soon. Let's evaluate the situation with the technical points of view.
As we see from the chart below - weekly price is on bearish market condition located below 100 period SMA (100 SMA) and 200 period SMA (200 SMA) with the ranging within the following key support/resistance levels:
- Fibo resistance level at 1.1713 located below 100 SMA/200 SMA and near the border between the primary bearish and the primary bullish trend on the chart, and
- key support level at 1.0461 located far below 100 SMA/200 SMA in the primary bearish area of the chart.
The price is breaking Fibo support level at 1.0634 from above to below on open weekly bar for now for the bearish trend to be continuing with 1.0461 as the next real bearish target. RSI indicator is estimating the bearish trend with non-oversold way.
The Strategy. Watch close price to break Fibo support level at 1.0634 for possible sell trade with the target to be near and above 1.0461 support level.
