General overview: The pair formed the multi high in the market. The upside bids established upside momentum in the market. Clear break of yearly resistance line, 61.8% Fibonacci retracement back the bulls. Three-month-old horizontal area buyers, 100-day SMA adds to the downside filters. The pair hits the fresh highs in this session. The pair creates the higher highs in the market and leads towards the bullish side in the market. On the daily chart we can see that the trend line has been shown the breakout and ready for the steady growth in the market. US inflation expectations jump to multi-year top, suggesting reflation fears, greenback strength despite Fed’s rejection of tapering. Germany’s headline inflation, preliminary readings of US Q1 GDP will offer fresh impetus. The dollar is showing pressure in the market as the pair is supporting by the buyers in the market.
Technical analysis: from the technical point of view we can say that market create the bullish pattern in the market. While the leading indicator for the price pressure keeps reflation fears on the table, also backing the safe-haven assets like the US dollar and gold, the US Federal Reserve defends easy money policy. On the 4 hourly charts the market makes upside trend in the market. The positional traders can also take their positive move towards the buy side in the market. The market formed the bullish volatility in the market as the market expected to move towards the strong buy side further in the market. The buyers are getting opportunity to sit and lead the market now. The golden crossover can be seen in the market. The RSI also leads above 50 levels creates buy zone as well as MACD also move above zero level. The support level is 1.2078 followed by 1.2028 and resistance is 1.2178 followed 1.2228.
Trade idea: Our buyers will sit on the buy side at the level 1.2128 target will be 1.2188 -1.2228 and stop loss will be 1.2068.
