Overview:–By looking at the chart we can see that pair is heading north side and making successively higher highs and higher lows. The daily chart tells us the story of the bull’s victory. Well after making the low of 122.00 level we have seen sharp buying till 126.00 level and then we have seen a correction till 124.00 level which was second opportunity to buy the pair and last week it made a high of 126.00 level and breached the 200 SMA line with bullish candle.
Technical Analysis:- From technical prospective we can see that pair is trading and moving in an uptrend channel where only bulls can be seen. Bulls are dominating the bears at every nook and corner. Overall pair is trading above all the major and minor EMA lines, which is providing us bullish signal for the time being, however some correction can’t ruled out even these correction should be taken as buying opportunity.
Odds are in favor of bulls and our weekly bias remains bullish on the pair as long as pair is trading above 124.24 level. The first week of the week started with a positive note which has boosted up the buyer’s courage. On weekly chart also a clear cut breakout of the 50 EMA line can’t be ignored by bulls which is also providing strength to the bulls.
Also, a bullish crossover on the MACD indicator is providing us bullish signal and RSI is also favoring the bulls as it is trading above 50 level on weekly chart.
Trade idea:- Based on the chart and studies above we can say that one can go for buy above 126.00 level for the target of 128 and 129 with the tight stop loss of 124.00 level.
