Overview:- Bulls are doing so well and dominating the bears at every level and heading north side, However, Earlier pair was falling down from 2.1000 level continuously and arrived at 1.9000 where bears did their job in a good manner but after arriving at 1.9000 level which is a strong key support level, after arriving at key support level we have seen strong counter-attack from bull’s campaign. The way bulls are reacting it seems like pair has bottomed out and headed to north side.
Technical Analysis:- From a technical perspective a rounding bottom pattern has been formed on the daily chart which is providing us a bullish signal and it seems like bulls are approaching at 2.0550 level and 2.0700 level. A short term uptrend line has been formed on the daily chart which is providing us a bullish signal and on 4 hourly chart pairs is trading and moving above all the major and minor EMA lines which are providing us a bullish signal.
Also pair has given us a golden crossover of moving average where 50 EMA line has crossed up the 200 SMA line on the hourly chart which is providing us a bullish signal. We will keep our view bullish on the pair as long as 1.9500 levels remain intact on a closing basis. Odds are favoring the bulls and we will get further bullish confirmation above 2.000 level.
On MACD indicator both signal line and MACD lines have been overlapped each other which is indicating that some bounce is expected and a bullish crossover is also favoring the bulls. RSI is also holding the parity above 50 levels which is providing bullish signals and favoring the bulls. Odds are in favor of bulls and our bias remains bullish on the pair as long as 1.9500 level remains intact. The 1.9500 level is key support level followed by 1.9000 level whereas 2.000 level is key support level followed by 2..0500 level.
Trade idea:- Based on the chart and studies above we would suggest buy the pair at 1.9800 for the target of 1.9940 and 1.0100 level with very tight stop loss of 1.9500 level on closing basis.
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