Overview:- By looking at the daily chart t we can see that earlier pair was heading south side and was hanging below the moving average lines but after marking the low of 1.0980 level we have seen a bullish attempt on last Friday and yesterday bulls follow the same momentum where it marked a high of 1.1089 level which was the rally of more than 100 pips. The way bulls are getting demand pressure from the 200 SMA line. It seems like it is perfect buying opportunity and we will keep our view bullish on the pair as long as 1.0980 level remains intact.
Technical prospective:- From technical prospective we can see that pair has started to get reverse from the exact 61.8% Fibonacci retracement line. The Fibonacci retracement was applied from 1.0878 to 1.1175 i.e. recent peak and trough from intermediate point of view. One more thing we can see that pair is heading up with double bottom price pattern which indicates that we may see further reversal signal.
It is just a starting of bulls so we will get further bullish confirmation if bulls gives us daily closing above 1.1100 level which is a psychological level. Overall pair is trading and sustaining above the moving average lines which is providing upside signal. A bullish crossover on MACD indicator is a recent development and RSI started to incline above 50 with a small divergence. Odds are in favor of bulls and our bias remains bullish on the pair as long as 1.0980 level remains intact.
What next:- A daily closing above 1.1000 level will open the way towards the 1.1150 and furthermore in coming trading sessions and convert every dip as buying opportunity. The pair could face the next support at 1.0980 ahead of 1.0900. On the upside, resistances align at 1.1180 and 1.1250.
Trade idea:- Based on chart and studies above we can suggest that buy the pair at CMP 1.1060-50 for the target of 1.1100 and 1.1150 with the tight stop loss of 1.0980.
