Overview:- By analyzing the daily technical chart we can see that earlier bulls were doing their best and heading to the north side. The overall pair is now trading in an uptrend and in an uptrend market always buy on dips will be profitable strategy. Well, the way bulls are reacting it seems like they are driving the car and going for a long drive. In our previous report, we mentioned to buy the pair at 0.6500 level for the target of 0.6600 and 0.6700 level with a tight stop loss of 0.6400 and our target has been achieved smoothly.
Technical Analysis: – From a technical perspective, we can see that a bearish divergence on the RSI is inviting the Bears which is a reversal sign at an initial stage and pair reversed from 0.6798 and arrived to 0.6748 however we will get further confirmation below the 0.6700 level where we get the clear confirmation of trend reversal. On the hourly chart, pair is trading below all the major and minor EMA lines which is favoring the bears.
Odds are in favor of bears, and we will keep our view bearish on the pair as long as the 0.6800 level remains intact. The MACD indicator is also favoring the bulls.
What Next:- The 0.6800 level is the immediate key resistance level followed by 0.6850 level whereas the 0.6700 level can be considered as key support level followed by 0.6650 level.
Trade idea:- Based on the chart and studies above we would suggest our traders and investors that go for sell at 0.6750-60 level for the target of 0.6700 and 0.6650 with a stop loss of 0.6850 level.
