Overview:- Bulls have become too aggressive after providing the breakout of 1.1060 level, today in the morning session EURUSD has made a high of 1.1050 level.
In our previous report also we mentioned to buy the EURUSD around 1.1160 and our targets were 1.1200 and 1.1300 level which have been achieved smoothly. Well the way pair is trading and sustaining it seems like bulls will arrive at the 1.1500 level in the coming trading session. The short term to long term trend is up so in an uptrend market, buy on dips which will be a profitable strategy. The way bulls are reacting it seems like they are approaching the 1.1500 level in the near term. On the contrary if eurusd trades and settles below the 1.0850 level then we may see selling pressure till 1.0650 level support zone.
Technical Analysis: – From a technical perspective we can see that a an uptrend line is lying which is providing us a bullish signal. Overall it is trading above all the major and minor EMA lines and favoring the bulls.
RSI has arrived above70 level and providing full strength to bulls, which is a purely overbought territory so some correction can’t be ruled out but these corrections should be taken as buying opportunity. Odds are in favor of bulls and daily to weekly bias remains bullish on eurusd as long as 1.0805 level remains intact on a closing basis. A bullish crossover on the MACD is also supporting the bulls on the daily chart. Also, bulls are playing at the front foot for the time being and it seems like bulls are going to continue with this game and will not provide any chance to bears.
Trade idea:- Based on the chart and study above we would suggest that traders may go for buy above1.1060 for target of 1.1300 and 1.1500 level with strict stop loss of 1.0805 level on closing basis.
