June 7, 2018
The current market sentiments are generating signal of trend reversal. We are witnessing a rally which has many volatile sessions from past couple of days. Earlier pair was heading lower but after arriving at 1.1509 level we have seen strong counter attack from bull’s campaign and demand has raised all of sudden. Presently pair has managed to sustain above the 23.6% Fibonacci retracement level.
Earlier traders & investors were expecting that pair will fall down but now bulls has created a twist in the market as falling wedge pattern has been formed which indicates that pair will move towards north side. The way bulls are dominating the bears it seems like this pair will touch the 1.2000 level in very short term. Odds are in favor of bulls and we keep our bias bullish on the pair as long as 1.1620 level remains intact.
ECB assured that they will discuss how to exit the QE program in the June 14th meeting. In addition, the US Dollar extends its slide. Uncertainties about global trade weigh up on the greenback.ECB member also assured that interest rates to remain at present levels for an extended period of time.
Presently pair is trading above all the moving averages which support the bullish sentiments. A bullish crossover on MACD indicator is favoring the bulls and providing trend reversal signal for the time being and RSI is also providing bullish signal from positive territory. The 1.2000 level is immediate resistance level followed by 1.2160 whereas 1.1620 level is strong key support level followed by 1.1500 level.
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