Overview:– EURO is trying to manage itself in every pair wherever it is a base currency. Well on the daily chart as we can see that pair is falling down successively and getting perfect supply pressure from the downtrend line which is providing us bearish signal. Well the pair is falling down towards south side and making successively lower lows and lower highs by taking the supply pressure from the downtrend line.
Overall bears were driving the car but after arriving at 1.0589 level we have seen strong counter attack where bulls entered with full of volume and they forced the bears to sit at back side. Well at the initial war of bulls and bears the bulls are getting advantage and winning at every session since last 2 days but it will be more interesting to know that who will win the weekly war. Odds are in favor of bears and we will get bullish signal once we find a valid breakout of the downtrend line.
In our previous report also we mentioned to sell at 1.0770-1.0780 for the target of 1.0700 and 1.0600 with the tight stop loss of 1.0840 level so our both target achieved and we are expecting that our readers must have made profit from this move.
Technical Analysis:- From technical prospective we can see that a down trend line is forming and pair is trading and sustaining just near to that line and very balanced demand and supply is going on. The last 2 day’s price action indicates that bulls are going to rock in this pair today or tomorrow. A valid breakout of 1.0650 will open the way towards the 1.0700 and 1.0740 level in short term.
The way bulls are reacting on the weekly as well as on the daily chart it is indicating that pair will defiantly test the 1.0700 level. Bulls are taking the control on the pair and playing at the front foot, the way bulls are reacting it seems like they are approaching the 1.0700 level on a bigger picture. Recently it marked a high of 1.0623 and further rise is still awaited.
Odds are in favor of bulls. Intraday bias remains bullish on the pair. The MACD indicator is also favoring the bulls and still providing us bullish crossover. RSI is providing us bullish signal from oversold territory. The 1.0700 level is immediate resistance level followed by 1.0750 whereas 1.0600 levels is strong key support level followed by 1.0570 level.
Trade idea:- The present picture suggests us that buy at the current levels i.e. 1.0623-1.0610 for the target of 1.0700 and 1.0750 with the tight stop loss of 1.0550 level.
