Positional technical view-
The pair gave strong close in yesterday's session. The pair breached the descending 2-month trend line and closed above it. The 20Dsma level is acting as a strong resistance level, above this, the weekly support level is acting as resistance. In case the pair closes above 20Dsma (1.2766) and the weekly resistance trend line, the near term-trend will turn positive. This week, as of now the pair is showing strong strength after 25 weeks. Until the price trades above 1.2715 (previous week's high), the bulls have an upper hand towards 1.2765 and 1.28 trend line. If the pair breaches the 1.28 levels, we can expect another 50 pips on the upside.
Resistance: 1.2765, 1.28, 1.2850
Support: 1.2715, 1.2570, 1.2500
For an intraday view, the prices are closed above 12ema. For the last 3 days the prices have been supported by 12ema on an hourly closing basis. In the H4 chart, the pair is in progress to made a higher high after July 2014. The pair support is at 1.2715, 1.2650 and 1.2619 levels. We recommend buying at the market price of 1.2729, sl 1.2715, targets are 1.2750, 1.2775 and 1.28. For bears, sell below 1.2650 with targets at 1.2620 and 1.2580 levels.
