Overview:– By analyzing the daily technical chart we can see that pair is doing so well and heading north side. A long term downtrend line has been breached out already and in our previous report we also mentioned to buy at 1.0590-1.0580 for the target of 1.0700 and 1.0800 with the tight stop loss of 1.0470 level and our both targets have been achieved like a cake walk. Well pair has potential to move up further.
Overall bulls were driving the car and moving towards upside; with a potential approach of 1.1000 level at least. Well it made a high of 1.0914 and then followed by a correction till 1.0600 level which was alternative opportunity to buy again for those who missed earlier.
Technical Analysis:- From a technical perspective we can see that a short term rouding bottom pattern has been formed above the down trend line which has been breached out and bulls are sustaining above the breached line which is a silver lining for the bulls. Presently pair is trading above all the major and minor EMA lines which are providing us a bullish signal.
Odds are in favor of bulls and we will keep our view bullish as long as 1.0600 level remains intact on a closing basis. Well the way bulls are reacting it seems like it is the perfect time to accumulate the pair. Bulls are doing their best and they will be more active above 1.0800 level; where they will give a clear confirmation of the bottom-out process.
A three black crow price pattern has been formed on the daily chart which is itself a bullish pattern and providing us bullish signal. The MACD indicator is also favoring the bulls and still providing us bullish crossover. RSI is providing us a bullish signal above 50 level. The 1.0920 level is immediate resistance level followed by 1.1050 whereas 1.0600 levels is a strong key support level followed by 1.0500 level.
Trade idea:- The present picture suggests that buy at the current levels i.e. 1.0760-1.0750 for the target of 1.0900 and 1.1000 with the tight stop loss of 1.0600 level.
