Overview:- Overall pair is trading and moving above all the major and minor EMA lines and but the momentum is too slow. Well the way pair is trading and moving in it seems like the 1.2800 level can be a stumble block for bulls which is a previous swing’s high. Above the 1.2800 level we can say that bulls will get more freedom and they will approach the 1.3000 level on the clear cut breakout of 1.2800 level.
Earlier pair was moving in a particular range of 1.2250 to 1.2700 but from the starting of this week we have seen bullish sentiments on the pair and pair arrived at 1.2750 level today at the time of writing which is a bullish sign itself.
Technical Analysis:- From a technical perspective, we can see on 4 hourly chart an uptrend line is lying and a bounce from 200 SMA line i.e. key support level is flashing the buy signal and favoring the bulls. Well aggressive traders may initiate their buy position at current price however positional trades are advised to wait for the clear breakout of 1.2800 level. A valid breakout of this level will open the way towards the 1.2900 and 1.3000 level.
On contrary we will get a bearish confirmation once pair trades and settles below the 1.2500 level on daily closing basis and then the 1.2400 and 1.2250 level seems as soft target for bears. Odds are in favor of bulls we will keep our view bullish as long as 1.2500 level remains intact on positional basis.. The RSI is seems positive on the Daily as well as 4 hourly chart and a bullish crossover on MACD is also favoring the bulls on 4 hourly chart which is a recent development.
What next:- The 1.2800 level is immediate resistance level followed by 1.3000 whereas 1.2600 level is strong key support level followed by 1.2500 level.
Trade idea:- Based on chart and studies above we can suggest that buy the pair at 1.2740 for the target of 1.2900 and 1.3000 with tight stop loss of 1.2500.
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