june 5 , 2018
Technically pair is trading at its highest in six weeks i.e. 0.7665 level after providing a valid breakout of the downtrend line which was lying on the daily chart. Well this breakout has appeared with strong bullish sentiments and a bullish marabuzo along with hammer posted on the daily technical chart.As we have mentioned in our previous report that go for long in the pair and we are expecting that traders have made money from this profitable move.
Earlier pair was trading and moving in the downtrend channel but now it seems like bulls has came out from the cage and bullish sentiments are on the cards. The pair has started the week strongly, rolling more than 1% against its US foil on the back of some strong domestic data on Monday and an improvement in broader global risk sentiment. An upbeat tone in the equity market pushed the pair towards the upside.
Our focus is now shifted to today’s RBA statement with Australia’s central bank likely to maintain its monetary policy stance, keeping rates on hold at 1.5%. Whilst this persistence will be of no surprise to markets, traders will be looking for any hawkish surprises in tone that could provide the local currency with further upside. The RBA decision is up next which can be an Acid Test for bulls, once they clear this acid test then 0.7800 level not a big deal for bulls but if the condition is unfavorable then we may see steep decline in the pair, so fingers are crossed for the time being and let the data come. Traders and investors are advised to make fresh position after release the data.
A clear bullish breakout on MACD indicator is also favoring the bulls and generating bullish signal. RSI is also supporting the bulls from the positve territory. The 178.00 level could be seen as immediate resistance level followed by 179.00 level whereas 175.00 level is strong key support level. The odds are in favor of bulls as long as the above mentioned key support level remain unbreached.
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