Written by – Ritika Saini, Jr. Commodity & Forex Analyst
It’s been so long that pair was travelling in the downtrend with perfect demand and supply level where it was trading in a downtrend channel pattern, where we have seen many whipsaws towards south side and pair was making successively lower lows and lower highs.
In the last week we have seen a strong counter attack from bull’s campaign where they made a steep recovery and bulls made a valid breakout of the downtrend line. From technical prospective we have seen a three white solider price pattern has been posted on the daily chart which is providing us bullish signal. The way bulls have snatched the bite from bull’s mouth and now it’s time to have a rally.
Well it’s just a starting further rally is still awaited and seems on the cards. We will get further confirmation once pair trades and settles above 1.1400 level on daily basis. Presently pair has breached all the moving average lines which is providing strength to the bulls.
In the last week we have seen strong bullishness from 1.1125 to 1.1389 at the time of writing, where everyone was shouting that pair has bottomed out and now it’s time to accumulate the pair.
The way bulls are reacting it seems like current buying is not a trap , it’s just a strong buy and pair has bottomed out. Traders and investors are advised to sit at long side and enjoy the rally.
A bullish crossover on MACD indicator is favoring the bulls and providing us bullish signal for the time being. RSI arrived in the positive territory i.e. above 50 level, which is supporting the bulls.