Written by : Harish Shahi, Sr. Commodity & Forex Analyst.
By looking at the daily chart we can see that pair is making suceessively higher highs and higher lows on day to day basis; even it is heading north side with aggresively , it seems like only bulls are leading and dominating the bears. Well in our previous report we have mentioned that bulls have arrived at key resistance level and a valid breakout on either side will give us new buy or sell signal and we have witnessed the same bulls have given us upside breakout and it seems like bulls are dancing with three white solider pattern has been formed.
The current set up of bulls indicates that bullish storm is going on and further bullish sentiments are awaited. Presently bulls are taking the charge and it seems like they are not ready to calm down in early stage. Bulls looks too aggressive and it may test the 1.9000 level in near term.
From technical prospective we can see that a resistance line has been breached out and so many big bullish marabuzo candlesticks are existing above the line which is a recent development on the daily chart and providing us strong bullish signal. Odds are in favor of bulls and intraday bias remains bullish on the pair as long as 1.8200 level remains intact. Some profit booking can’t be ignored but that should be taken as bullish opportunity for those who have missed earlier.
A bullish crossover on MACD indicator is still existing on the daily chart which is supporting the bulls and RSI is also favoring the bulls from positive territory. The 1.8200 is immediate support level followed by 1.8000 level whereas 1.8800 level is immediate resistance level followed by 1.9000.