Overview:- Bulls are doing so well and dominating the bears at every level and heading north side, pair is rising up from 1.9325 level continuously and arrived at 1.9667 where bulls did their job in a good manner and breached the 1.9400 level which is a strong key resistance level. The way bulls are rising up it seems like they are approaching the 1.9830 level and further rising is still awaited.
Technical Analysis: – From a technical perspective, an uptrend line is lying and providing us a bullish signal. On the hourly chart and 4, the hourly chart pair is trading and moving above all the major and minor EMA lines which is providing us a bullish signal. Also, the 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 1.9420 levels remain intact on a closing basis. Odds are favoring the bulls and we will get further bullish signals above 1.9700 level.
On the MACD indicator, both signal line and MACD lines are providing bullish crossover which is providing us a bullish signal. RSI is also trading above the 50 levels which is also providing us a bullish signal. The 1.9500 level is the key support level followed by 1.9400 level whereas the 1.9750 level is the key resistance level followed by 1.9850 level.
Trade idea:- Based on the chart and studies above we would suggest buying the pair at 1.9650-40 for the target of 1.9750 and 1.9850 level with a very tight stop loss of 1.950 level on closing basis.
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