Overview: – By analyzing the daily technical chart we can see that bulls are playing at the front foot and started to dominate the bears. Bulls rebounded continuously from 1.68431.7139 level yesterday. On 4 hourly chart, we have got clear trend reversal signal and bias has been changed from downside to upside. Odds are in favor of bulls now and our bias remains bullish on the pair as long as 1.6850 level remains intact on a closing basis.
Technical Analysis:- From a technical perspective, we can see that a short term rounding bottom price pattern has been formed on the daily chart and the surface of the rounding bottom pattern has been formed now we need just a bounce to confirm the authenticity of the price pattern.
A short term uptrend line has been formed on the 4 hourly chart and 8 hourly charts which is also providing us a bullish signal. For a safer side, we need a valid breakout of the 1.7150 level and if bulls give this breakout then we may get surety for the further buying. The pair is getting support from the uptrend line and getting a bounce from there every time. It seems like bulls are approaching the 1.7500 level and then 1.7700 which seems as unfinished target of bulls and as we can see that bulls are sustaining above the minor and major EMA
RSI arrived in the positive territory above 50 level which is favoring the bulls and a bullish crossover on the MACD indicator is the recent development on the major hourly charts and daily chart.
What Next:-. The pair could face the next support at 1.6950 ahead of 1.6850. On the upside, resistances align at 1.7300 and 1.7500
Trade idea:- Based on the chart and study above we can suggest to our readers that buy above 1.7150 for the target of 1.7300 and 1.7500 with a tight stop loss of 1.6950 level.
Disclaimer: This is to be considered a marketing communication only, this does not contain, and should not be construed as containing, investment advice or an investment recommendation or investment research or, a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instruments. Past performance is not a guarantee of or prediction of future performance. Cabana Capitals does not take into account your personal investment objectives or financial situation. Cabana Capitals makes no representation and assumes no liability as to the accuracy or completeness of the information provided, nor any loss arising from any investment based on a recommendation, forecast or other information supplied by an employee of Cabana Capitals, a third party or otherwise. Consequently, any person acting on it does so entirely at their own risk. This material has not been prepared in accordance with legal requirements promoting the independence of investment research and it is not subject to any prohibition on dealing ahead of the dissemination of investment research. All expressions of opinion are subject to change without notice. Any opinions made may be personal to the author and may not reflect the opinions of Cabana Capitals. This communication must not be reproduced or further distributed without prior permission.
