Overview:- Overall pair is trading and moving above all the major and minor EMA lines and but the momentum is too slow. Well the way pair is trading and moving in it seems like the 0.8470 level can be a stumble block for bulls which is a previous swing’s high. Above the 0.8470 level we can say that bulls will get more freedom and they will approach the 0.8560 level.
Technical Analysis:- From a technical perspective, we can see on 4 hourly chart an uptrend line is lying and a bounce from 200 SMA line i.e. key support level is flashing the buy signal and favoring the bulls. Well aggressive traders may initiate their buy position at current price however positional trades are advised to wait for the clear breakout of 0.8470 level. A valid breakout of this level will open the way towards the 0.8570 and 0.8600 level.
On cotrary we will get bearish confirmation once pair trades and settles below the 0.8340 level on daily closing basis and then the 0.8260 and 0.8200 level seems as soft target for bears. The RSI is seems positive on the Daily as well as 4 hourly chart and a bullish crossover on MACD is also favoring the bulls on 4 hourly chart which is a recent development.
Trade idea:- Based on chart and studies above we can suggest that buy the pair at 0.8400 for the target of 0.8500 and 0.8600 with tight stop loss of 0.8330.
