EUR/USD: Rounding bottom pattern is in process of formation

By looking at the daily chart of the pair we can see that bulls have entered in the market, when pair made a low of 1.1183 level then we have seen it bounced sharply on the same day due to which a hammer has been posted on the daily chart after that bulls got the charge and took the pair towards north side. Presently pair is trading and surviving above the moving average lines which is providing us bullish signal.

The recent candle is bullish marabuzo candlestick which is indicating that bulls are leading and playing at front foot for the time being and we may see further bullish confirmation once we see daily closing above the 1.1300 level. The EUR/USD pair, which spent the majority of the day fluctuating above the 1.1200 handle. Overall pair is hovering between the ranges of 1.1300 to 1.1100 levels which is range of rounding bottom pattern. Well the way bulls are reacting it seems like the bullish breakout 1.1300 level is on the cards.

A bullish marabuzo candlestick followed by another bullish marabuzo candlestick is providing us bullish signal. Today again bulls are trying their best to take the pair towards north side. A daily closing above 1.1300 level will open the way towards the 1.1400 and 1.1500 level. Well the traders and investors are advised to have long position at the current level with the strict loss of 1.1200 level.

Odds are in favor of bears. We will keep our bias as bullish on the pair as long as 1.1200 level remains intact. The pair could face the next support at 1.1200 ahead of 1.1140. On the upside, resistances align at 1.1400 and 1.1500. 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.

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