Overview: – The first look of the chart shows that a rounding bottom pattern has been formed and a very balanced demand and supply is going on the chart. Well, Bulls started the journey from the 74.77 level and marked a high of 82.00 level but after arriving at that level we have seen some correction and profit booking till 78.01 level where 50 day EMA line is providing support to move up again.
The bulls are rocking on every time frame including daily, weekly, and monthly charts where only bulls are traceable. Since the starting of June month bulls are taking the charge and pair is rising up continuously from 78.00 to 80.54 level which is a massive bullish storm from an intraday point of view. Also bulls managed to sustain above 80.00 level which is providing strength to the bulls.
Pair is making successively higher highs and higher lows on day to day basis. The way bulls are heading the north side it seems like they are trying to arrive 82.50 and 85.00 level in near term.
Technical Analysis: – From a technical perspective, we can see that a perfect cup and handle price pattern has been formed on the daily chart which is providing us a bullish signal. Pair has given us valid breakout of the symmetric triangle which is providing us bullish signal and on 1st June it also breached a very strong resistance level of 78.20 which can’t be ignored and once again bulls are getting bounce from there so we can say that the resistance level is now reacting like a support level.
Also, a perfect rounding bottom pattern is in process of formation which is also providing bullish signal with a very balanced demand and supply and favoring the bulls. Overall pair is trading above all the major and minor EMA lines on 4 hourly chart which is providing us a bullish signal. A short term uptrend line is also providing strength to the bulls on 4 hourly charts from where bulls are getting demand pressure.
Odds are in favor of bulls and we will keep our view bullish on the pair as long as 78 levels remain intact on the closing basis The 78.00 level can be considered as key support level followed by 77.00 level whereas 82.50 level can be considered as key resistance level followed by 85 levels. On contrary, a steep downfall below 78.00 will change the outlook from bullish to bearish and we may see further downfall till 75.00 however there are very few chances for this event.
RSI has taken bounce from 50 levels and getting stronger on daily chart MACD indicator is providing us bullish crossover of the zero lines which is supporting the buyers.
Trade idea- based on the chart and studies above we would suggest our traders and investors that go for buy at 79.20-10 level for the target of 82.50 and 85.00 with the tight stop loss of 77.50 level on closing basis.
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