By looking at the daily technical chart we can see that earlier pair was heading south side with full of bearish momentum and breaking all the major and minor support levels. But from last couple of days we witnessed that bears denied to go down further and bulls took the charge with slow speed but yesterday a massive bullish attempt can be seen where from starting of the day bulls did not stop and took the pair at 1.6260 level which was a fabulous move.
In our previous report we mentioned to short the pair at around 1.6500 level for the target of 1.6000 level with the stop loss of 0.6750 level and our target achieved so we are hoping that our readers must have minted profit from this move.
Technical Analysis:-
From technical prospective we can see that a rounding top pattern has been completed and bears completed their journey so well manner on the chart. The recent candle is bullish marabuzo candlestick all the major and minor EMA lines which is providing us bullish signal. A bullish crossover on the MACD indicator is favoring the bulls RSI is moving above the 50 line which is providing us bullish signal. Overall all the set up is indicating that further bullish momentum is on the cards.
What next:-.
A daily closing below 1.6250 level will open the way towards the 1.6350 level and it will give us further confirmation of bullishness. Well the way bulls have snatched the bite from bear’s mouth it seems like bulls are going to rock for further sessions as pair is already trading between the crossed moving average lines. Yesterday we have witnessed a big bullish marabuzo candlestick in the form of bullish engulfing candlesticks which is providing us bullish signal.
Odds are in favor of bulls and intraday bias remains bullish on the pair as long as 1.6050 levels remains intact. The way bulls are reacting it seems like they are approaching the 1.6350 level. The 1.6100 is immediate support level followed by 1.6000 level whereas 1.6250 level is immediate resistance level followed by 1.6350.
Trade idea : Based on chart and studies above we can say that buy pair at 1.6210-05 target is 1.6350 and 1.6450 with the stop loss of 1.6080.
