Overview:- By looking at the daily chart we can see that bulls are rocking and seems in a party mood as we can see that in this month the whole credit goes to bulls and initially bulls breached the downtrend channel and then it marked a high of 1.1170 level where 1.0950 was a psychological level and bulls able to break this level.
Every swing is making successively lower highs and lower lows, but recently we have seen some correction after a strong buying from past couple of days. Bulls are in party mood and seems like they are approaching the 1.1170 level. The short term trend is up and in a bullish market just buy on dips as long as 1.0980 level remains intact we will keep our view bullish.
Technical prospective:- From technical prospective we can see that a flag pattern is in process of formation where only bulls are leading and playing the game at front foot. Well the recent correction is another opportunity to buy again. Overall pair is trading and sustaining above the moving average lines which is favoring the bulls. The bullish crossover on MACD indicator is flashing the bullish signal and RSI also arrived into positive territory.
Trade idea:- Based on chart and studies above we can suggest that buy the pair at CMP 1.1050 for the target of 1.1150 and 1.1200 with the tight stop loss of 1.0950.
