Overview : by looking at the daily technical chart we can see that bulls are leading in the game from past couple of days and they made a fabulous counter attack from the 107.64 level and since then it is heading upside with strong bullish momentum and yesterday it marked a new high of 110.20 which is fresh high after May 2019. Well bulls are trading and surviving above multi month’s high which is favoring the bulls and leading in the game.
Since last few weeks we are witnessing very narrow range move in the pair and the way pair is moving on it seems like tug of war is going on and bulls won the game and dominating the bears at every level. Even in our previous report also we mentioned to go for long around 108.40-30 level for the target of 109.60 and 110.30 sl is 107.50 level so we are expecting that our readers must have made profit from this move.
Technical Analysis:- From technical prospective we can see that on daily chart bulls are taking support from an uptrend line. We will keep our view bullish on the pair as long as uptrend line remains intact. On hourly chart a potential rounding bottom pattern has been formed which means like bulls are going to test the 110.60 level once again. The 110.60 level seems as too strong resistance level but we need a clean sweep of this level to arrive at 111 level in near term. This week’s closing matter a lot. Well the way bulls are reacting it seems like bulls will arrive at this level in near term. . A bullish crossover on the MACD indicator is generating bullish signal for the time being and RSI is also favoring the bulls for the time being. Presently pair is trading above all the major and minor EMA lines which is providing strenght to the bulls.
What next:- Odds are in favor of bulls. Intraday bias remains bullish on the pair as long as 107.50 level remains intact. A daily closing above 110.60 level will open the way towards 111.00 level and furthermore in near term.The 109.30 is immediate support level followed by 108.70 level whereas 110.60 level is immediate resistance level followed by 111.
Trade idea:- Based on chart and studies above we would recommend that one should go for long around 109.80-70 level for the target of 110.60 and 111.00 sl is 109.00 level.
