Overview:- By looking at the daily chart we can see that bulls are rocking and seems in a party mood as we can see that in this month the whole credit goes to bulls and initially bulls breached the downtrend channel and then it marked a high of 1.1178 level where 1.1100 was a psychological level and bulls able to break this level. In our previous report also we mentioned to buy the pair around 1.1100 for the target of 1.1180 with the tight stop loss of 1.1050 level and our target has been achieved so we are expecting that our readers must have minted profit from this move .
Every swing is making successively lower highs and lower lows, but recently we have seen some correction after a strong buying from past couple of days. Bulls are in party mood and seems like they are approaching the 1.1250 level. The short term trend is up and in a bullish market just buy on dips as long as 1.1000 level remains intact we will keep our view bullish.
Technical prospective:- From technical prospective we can see that a flag pattern is in process of formation where only bulls are leading and playing the game at front foot. Well the recent correction is another opportunity to buy again. Overall pair is trading and sustaining above the moving average lines which is favoring the bulls. The bullish crossover on MACD indicator is flashing the bullish signal and RSI also arrived into positive territory.
Odds are in favor of bulls and our bias remains bullish on the pair as long as 1.1000 level remains intact. The parabolic SAR is also providing us bullish signal as we can see the green dots on the bottom of the candle.
What next:- A daily closing below 1.1150 level will open the way towards the 1.1250 and furthermore in coming trading sessions and convert every dip as buying opportunity. On contrary a strong momentum below 1.1100 level and closing below 1.1000 will change the outlook from bullish to bearish.. The pair could face the next support at 1.1050 ahead of 1.1000. On the upside, resistances align at 1.1200 and 1.1250.
Trade idea:- Based on chart and studies above we can suggest that buy the pair at CMP 1.1100 for the target of 1.1180 and 1.1250 with the tight stop loss of 1.1000.
