May 18, 2018
The pair is trading at 110.89 level and making successively higher highs and higher lows on day to day basis. Poor Japanese data and supporting US data has lifted the pair towards north side. The national CPI data was down by 1.1% which was the key factor to take the advantage by bulls. Traders and investors are showing their interest to buy the USD as they have bullish bias for USD as the widening 10 years differential is too attractive to ignore.
From technical point of view we can observe that a uptrend channel has been formed on the daily chart which indicates further buying can’t be ignored and generating bullish bias as long as uptrend line remains intact. From intermediate to long term point of view the rounding bottom pattern has been formed which indicates that 113.75 level is not a far away from here.
The pair is trading above all the major and minor moving averages and providing strength to bulls and RSI along with MACD indicators are also favoring the bullish sentiments. We should keep our bias bullish as long as 109.00 level remains unbreached. The trading strategy should be Buy on Dips. The 109.00 level is the key support level followed by 107.00 level where as 113.00 level is the key resistance level followed by 115.00.
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