July 25 , 2018
Overall pair was falling down from 1.2400 to 1.1501 with a strong bearish momentum and without taking any rest or correction. Well after arriving at the bottom side it seems like bears has become tired and bulls made a counter attack but could not succeed. From the starting of June 2018 and July month is also about to end, the tug of war is going on. Both bulls and bears are fighting and trying to take the pair at their own side but no result can be seen.
Well the current set up is part of potential rounding bottom pattern which indicates that bulls will come but with a slow process. Initially bulls have to clear the 1.1845 level which is an acid test for them as it’s a recent swing’s high on the daily chart. Odds are in favor of bulls. We will keep our bias as bullish on the pair as long as 1.1600 level remains.
Eurozone PMI data reflected slightly better than expected manufacturing trends but a little weaker than expected activity in services – and a slight deceleration in the composite PMI index as a result. German data was generally on or better than expected firm while the French numbers were mildly disappointing.
Overall, the data remain comfortably in expansion territory following the broader deceleration in activity earlier in the year. Broader sentiment may well be shaped by the outcome of US-EU trade talks in Washington this week between President Trump and EC President Juncker.
The short term to intermediate term trend is still down so in a downtrend market positional traders are advised to keep aside and wait for the clear buy or sell signal, whereas intraday traders are suggested that go for long with a strict stop loss.
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. The 1.1850 level is immediate resistance level followed by 1.2000 whereas 1.1650 level is strong key support level followed by 1.1500 level.
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