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 1.7038 level. It has arrived At half month’s fresh high of 1.7038 level and still sustaining above 1.7300 level which is positive sign for bulls. Well 1.7300 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.
Technical Analysis:- From technical prospective we can see that bulls are forming a headand shouldrer pattern where very balanced demand and supply is going on and we are expecting it to arrive at 1.6680 and 1.7038 level in coming trading session. A daily closing above 1.7038 level will open the way towards the 1.7250 and 1.7500 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 1.7000 level remains intact. A daily closing above 1.7038 level will open the way towards 1.7240 level and furthermore in near term
Trade idea:- Based on chart and studies above we would recommend that one should go for above 1.6970 level for the target of 1.7350 and 1.7500 sl is 1.6500 level..
