Overview:– By analyzing the daily chart of the pair we can see that earlier pair was falling down with strong bearish momentum. But after arriving at 1.3040 level pair could not sustain and it bounced sharply to 1.3316 level which indicated that there is no chance for bears for the time being and bearish sentiments is over now. In our previous report we mentioned to buy around 1.3170 level for the target of 1.3250 and pair has made high of 1.3316 level which is a sharp incline, we are hoping that readers are minting profit at the moment.
Technical Analysis:–
From technical prospective we can see that a rounding top pattern along with double bottom pattern has been completed on the daily chart which is indicating that bulls have completed their first phase and now it’s time to go for further long for second phase. The 1.3380 level is key resistance level and a valid breakout above this level will open the way towards the 1.3470 and 1.3500 level. Two consecutive bullish marabuzo and bullish engulfing candlesticks have been posted on the daily chart which is generating bullish signal. A bullish crossover on the MACD indicator with signal line and MACD line is also generating bullish signal. The RSI has turned up above 50 levels which is flashing the upside signal.
What next:- Overall pair is trading and sustaining above the moving average lines which is generating bullish signal. Recently pair has breached 1.328 level which is resistance level of 2000 SMA line , On contrary below 1.3180 level we will get trend reversal signal i.e. bearish signal. The 1.3380 level is key resistance level followed by 1.3500 level whereas 1.3180 level is key support level follwed by 1.3100 level.
Trade idea:- Based on chart and studies above we can suggest to our readers that go for buy around 1.3310-1.3300 level for the target of 1.3380 level with the tight stop loss of 1.3450 level.
