Weekly Trend Direction: Bullish
Weekly Trend Reversal Level: 0.8600
Key Support Levels: 0.8890, 0.8840, 0.8800, 0.8760, 0.8700
Key Resistance Levels: 0.9000, 0.9100, 0.9230
Entry Strategy: Buying dips in an uptrend at support levels, while market trades above trend reversal level.
Trade Suggestion: This pair finally broke above key resistance level at 0.8850 and made a new high at 0.8970. It is now moving in a bullish channel. It also has got daily bearish trendline key resistance at 0.9000 level, it is a psychological big number as well. By breaking out of 0.8850 strong resistance level, it is now facing strong support at 0.8850. This pair may pull back to 0.8850 level where bullish trend line support also comes in, before making another move up.
0.8900 level is acting as a support on this pair, the prices may bounce off from this level even without reaching 0.8850 support. On a conservative basis our suggestion is to go long at 0.8850 level after we see prices bouncing off from this level proving as support. As a matter of fact a strong resistance is likely to turn into a support in terms of price action. If prices break above trendline resistance and 0.9000 level , it will open up doors targeting 0.9100 , 0.9186 & 0.9336. A failed attempt to break above 0.9000 level will push the prices to 0.8850 level where it has strong support.
Our suggestion is to consider going long at 0.8850 level on a conservative basis which gives a good risk to reward, targeting 0.8900, 0.9000, 0.9100, 0.9186 followed by 0.9336..
Aggressive trade is to go long at 0.8900 targeting towards 0.9000, 0.9100, 0.9186 followed by 0.9336.
Alternate Suggestion: If price fails to break 0.9000 level and we see reversals then consider going short targeting 0.8900, 0.8850. This would be an aggressive counter trend trade.