Hi. I having a problem interpreting/understanding the basic impulse response graphs.

I have two I(1) variables in a reduced form VAR model using a 1 s.d shock on their residuals.

When var1 is shocked, the response from var2 graph is it increases by 0.2 s.ds while a shock in var1 on itself causes a response of it to fall by 0.2 s.ds. Does this mean that var1 and var2 have an inverse relationship? I.E the shock/innocation on var1 negatively effects var1 but posititvely effects var2?

Many thanks with any help you can give.