Overview:– The analysis of daily technical chart tells us the story of bull’s victory where we can see that earlier bears were leading in the game from 0.6680 level to 0.5500 level and then bears made a counter attack and headed towards the 0.6500 level which was fabulous ‘V’ shape recovery. The picture is showing the courage of bulls and bulls bounced from the 0.5505 level to 0.6500 level which was around 1000 pips bounce and converted all the bearish sentiments into bullish sentiments.
In our previous report also we mentioned to buy the pair above 0.6200-05 target is 0.6350 and 0.6450 with the tight stop loss of 0.6070 and our both targets have been achieved so we are expecting that our readers must have made profit from this move.
Earlier pair was heading south side but when pair marked a low of 0.5500 level which is strong support level and low of multi year’s, and then we have seen steep recovery and it marked a high of 0.6500. Today at the time of writing it is trading at 0.6320 level and which is also support level.
Technical Analysis:-
From technical prospective we can see that pair is trading above all the major and minor EMA lines which is a positive sign for bulls and the way bulls are reacting it seems like they are not in any pressure now and they are leading the pair with their strong foot note.
The RSI is also favoring the bulls from positive territory and MACD indicator is also providing strength to the bulls with bullish crossover. The fan lines fold are flashing that 0.6500 level is the only stumble block for the bulls and if bulls above to break this level then we may see further buying till 0.6800 and 0.6950 level. A ‘V’ shape recovery where bulls dominated the bears is telling us the story of bulls.
A short term uptrend line has been formed and bulls are rising up by taking the support of an uptrend line. The parabolic SAR dots are supporting the bulls as they are existing below the candles.
This week’s closing matters a lot which will decide the direction for upcoming week. Odds are in favor of bulls and intraday bias remains bullish on the pair. as long as 0.6200 level remains intact. On contrary below 0.6200 level will be the first sign of bearishness and then a daily closing below this level will open the way towards the 0.6000 and 0.5800 level however there are very low chances of this downside momentum for the time being.
What next:- The 0.6240 level is the key support level followed by 0.6100 level where as 0.6450 level is the key resistance level followed by 0.6550.
Trade idea:- Based on chart and studies above we can suggest that buy above 0.6300-05 target is 0.6450 and 0.6550 with the tight stop loss of 0.6200.
