Overiview :-From past couple of days we are witnessing very narrow range move in the pair and the way pair is moving on it seems like tug of war is going on. Yesterday pair has given us bullish breakout of the narrow range and now pair is trading and moving above the key resistance level of 1.0600 level. It has arrived at 2 and half month’s fresh high of 1.0665 level and still sustaining above 108 level which is positive sign for bulls. Well 1.0700 can be a stumble block for bulls which is a strong key resistance level where 200 SMA line is lying. Overall anyone can see that bulls are rocking and they are playing at front foot n the pair. Well presently pair is sustaining above the moving average line which is a good news for buyers.
Fundamental analysis:- This is lending some support to the Greenback and capping the upside for the EUR/USD pair, at least for the time being. Hence, the market focus will remain glued to the highly-anticipated FOMC decision, due to be announced later during the US session. Apart from this, investors will take cues from the accompanying policy statement and the so-called dot plot for clues about the Fed’s rate-hike path.
The outcome will play a key role in influencing the near-term USD price dynamics and provide some meaningful impetus to the EUR/USD pair. The focus will then shift to the European Central Bank (ECB) meeting on Thursday, which should help determine the next leg of a directional move for the major. Heading into key central bank event risks, traders might refrain from placing fresh bets, supporting prospects for an extension of the subdued/range-bound price action. Nevertheless, both the fundamental and technical backdrop seems tilted in favour of bulls.
Technical Analysis:- From technical prospective we can see that bulls are forming a rounding bottom pattern where very balanced demand and supply is going on and we are expecting it to arrive at 1.1000 and 1.1150 level in coming trading session. A daily closing above 1.1000 level will open the way towards the 1.1100 and 1.1200 level. Well the way bulls are reacting it seems like bulls will arrive at this level in near term. . A bullish crossover on the MACD indicator is generating bullish signal and RSI is also favoring the bulls for the time being. Presently pair is trading above all the major and minor EMA lines which is providing strenght to the bulls.
What next:- Odds are in favor of bulls. Intraday bias remains bullish on the pair as long as 108.50 level remains intact. A daily closing above 1.0700 level will open the way towards 1.1000 level and furthermore in near term
Trade idea:- Based on chart and studies above we would recommend that one should go for long around 1.0660 level for the target of 1.1000 and 1.1100 sl is 1.0430 level.
