Overview:- By analyzing at the daily chart we can see that earlier pair was making successively lower lows and lower highs where only bears were showing their full strength and they were doing so well and getting empowered at every lower level. They slipped from the 1.1238 level to 1.0991 level continuously but after making the low it could not sustain at that level and we have seen a hammer candlesticks.
In our previous report also we mentioned to sell the pair at CMP 1.1100 for the target of 1.1050 and 1.1000 with the tight stop loss of 1.1150, and our target has been achieved so we are expecting that our readers must have made profit from this move.
Technical prospective:- From technical prospective we can see that 1.1000 level is a strong support level and bulls did the same reaction as we were expecting. We have seen bullish counter attack and bulls took the pair at 1.1038 level yesterday, well if today pair close and sustain above 1.1050 level then we may announce that triple bottom price pattern has been formed and we can go for long, but if bulls unable to make it and bears got the chances then they will get more active below 1.1000 level.
A downtrend line has been formed and it is still valid we will get further bullish signal once pair gives us valid breakout of this level. The pair is trading below all the major and minor EMA lines which indicate that bears dominating the bulls.
A bearish crossover on MACD indicator is providing us bearish signal and RSI is below 50, which is providing us bearish signal. Odds are in favor of bulls and our bias remains bullish on the pair as long as 1.1028 level remains intact.
What next:- The pair could face the next support at 1.0980 ahead of 1.0950. On the upside, resistances align at 1.1080 and 1.1140.
Trade idea:- Based on chart and studies above we can suggest that aggressive traders may go for buy at current levels 1.1028-25 level for the target of 1.1060 and 1.1080 level with the tight stop loss of 1.1000 whereas positional traders are advised to wait for the clear signal either on sell side or buy side.
