Overview:– EURO is trying to manage itself in every pair wherever it is a base currency. Well on the daily chart we can see that earlier EURCHF was falling south side and was making successively lower lows and lower highs. The bears were getting perfect supply pressure from the downtrend line.
Overall bears were driving the car but after arriving near to 1.0500 level we have seen a strong counter-attack where bulls entered with full of volume and they forced the bears to sit at the backside. Well at the initial war of bulls and bears the bulls are getting the advantage and winning at every session for the last few days but it will be more interesting to know that who will win the monthly war.
Technical Analysis:- From a technical perspective we can see that a down trend line has been breached out and bulls are sustaining above the breached line which is a silver lining for the bulls. On 18th May 2020 also we have seen a bullish storm in the pair where it bounced around 150 pips and given green closing due to which bias shifted from downside to upside. Presently pair is trading above all the major and minor EMA lines which are providing us a bullish signal.
Odds are in favor of bulls and we will keep our view bullish as long as 1.0500 level remains intact on a closing basis. Well the way bulls are reacting it seems like it is the perfect time to accumulate the pair. Bulls are doing their best and they will be more active above 1.0700 level; where they will give a clear confirmation of the bottom-out process.
Last week’s bullish engulfing candlestick is indicating that pair will defiantly test the 1.0700 level. Bulls are having control over the pair and playing at the front foot. The MACD indicator is also favoring the bulls and still providing us bullish crossover. RSI is providing us a bullish signal from oversold territory. The 1.0700 level is immediate resistance level followed by 1.0850 whereas 1.0550 levels is a strong key support level followed by 1.0500 level.
Trade idea:- The present picture suggests that buy at the current levels i.e. 1.0590-1.0580 for the target of 1.0700 and 1.0800 with the tight stop loss of 1.0470 level.
