July 16 , 2018
As we have mentioned in our previous report that bullish breakout of downtrend channel has been occurred and bulls are leading for the time being. After making the low of 124.61 level bulls made a sharp counter attack and we have seen a bullish momentum and it is still continue. Well the way bulls are reacting it seems like they are approaching the 135 level but it will take time to arrive at that level.
From technical prospective we can see a rounding bottom pattern has formed on the daily chart is generating bullish signal. Odds are in favor of bulls and intraday bias remains bullish on the pair. Three consecutive bullish marabuzo candlesticks have been posted above the moving average line which provides courage to buy.
Fed’s Monetary Policy Report conveyed an upbeat tone on recent economic developments and signaled a continued gradual approach to rate hikes. US retail sales and IP and EZ CPI also on the cards. This week’s closing matter’s a lot.
A bullish crossover on MACD indicator is favoring the bulls and providing bullish signal for the time being and RSI is also providing bullish signal from above 50 territories. The 133.00 level is immediate resistance level followed by 135.00 whereas 129.00 levels is strong key support level followed by 127.00 levels.