Overview:- Since last 8 consecutive week’s we are witnessing downfall in the pair and pair is heading south side with strong bearish momentum. The pair has arrived at 2 year’s fresh low and from there we have seen panic buying from intraday prospective where bulls took the charge. A short term downtrend line was also lying on the daily which has been breached out but the intermediate downtrend line still remains intact. The pressure is coming from bulls to take it around 1.5000 level.
Technical Analysis: – From technical prospective we can see that pair took the charge from yesterday itself where bulls made a fabulous counter attack from 4 year’s low and took the pair from 1.4530 to 1.4930 level. Well it is just a starting further picture is still due and we are expecting that a rally is awaited.
On 4 hourly chart it has cleared all the minor EMA lines and even RSI along with MACD indicator is also favoring the bulls with positive territory and bullish crossover.
Recently it has given us valid breakout of downtrend line on the 4 hourly chart which is providing us bullish signal and the way bulls are reacting it seems like if it trades and settles above 1.4900 level then it may open the way towards the 1.5000 and 1.5050 level.
RSI is also trying to come up above 50 level and MACD line recently crossed up the signal line on the daily chart Overall pair is trading and sustaining below the moving average lines which is generating bearish signal for the time being.
Trade idea:- Based on chart and studies above we would suggest our traders and investors that go for buy around 1.4900 level for the target of 1.5000 and 1.5100 with stop loss of 1.4730 level
