June 12 , 2018
By looking at the chart we can see that pair is consolidating near 0.7600 level as it is very tuff time for both bulls and bears. Both are fighting and trying to get pair at their court. Bears are getting support as a downtrend line is lying on the daily chart and pair is sustaining below that level. Whereas, bulls are getting support as it is trading above all the major and minor EMA lines which is hope for the buyers.
From technical prospective we may see a potential rounding bottom pattern has been formed on the daily technical chart which will complete when pair will test the 0.7800 level but to reach that level it has to give the valid breakout of the downtrend line. And we know that it require some additional pressure. For the time being both bulls and bears are fighting with each other and tug of war is going on. Odds are in favor of bulls and we will keep our bias bullish on the pair as long as 0.7500 level remains intact due to positive signal from indicators and oscillators.
The Federal Reserve meeting is on Wednesday, when it is extensively anticipated to lift up interest rates in what would be its second rate hike this year..The week will also carry updates on U.S. inflation, retail sales and industrial production. But the silver could find some support from buying amid sensitive trade tensions as markets absorb the fallout from a contentious weekend G7 summit meeting in Canada.
RSI is generating bullish signal from positive territory and MACD indicator is also supporting the bulls for the time being. The 0.7750 level is immediate resistance level followed by 0.7850 whereas 0.7650 level is strong key support level followed by 0.7600 level.
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