- December 12, 2019
- Posted by: cabana-admin
- Category: Forex Broker
Overview:- By looking at the daily chart we can see that pair is heading north side and bulls are controlling the game for the time being. The way bulls are reacting it seems like bulls are approaching the 1.1300 level but to arrive at the mentioned target level we need a clean sweep of 1.1150 level where 200 SMA line is lying. It seems like it is perfect buying opportunity and we will keep our view bullish on the pair as long as 1.1000 level remains intact.
Technical prospective:- From technical prospective we can see that pair has started to get reverse from the exact 1.1000 level. A short term rounding bottom pattern is forming on the chart which is providing us bullish signal and one more thing we can see that pair is heading upside with double bottom price pattern which indicates that we may see further bullish signal.
It is just a starting of bulls so we will get further bullish confirmation if bulls gives us daily closing above 1.1300 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 providing us bullish signal 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 1.1100 level remains intact.
What next:- Primary to secondary trend is up so in an uptrend market buy on dips will be profitable strategy. The pair could face the next support at 1.1100 ahead of 1.1050. On the upside, resistances align at 1.1250 and 1.1300.
Trade idea:- Based on chart and studies above we can suggest that buy the pair at CMP 1.1130-20 for the target of 1.1200 and 1.1250 with the tight stop loss of 1.1050.