Duringyesterday's session, the pair held the 20Dsma and closed above it. The 20Dsma 1.11 is providing support from last 2 consecutive days on a closing basis. The nearest support zone existed between 1.1072 and 1.11 levels. A daily close is below 20Dsma. The bears are likely to try to drag another 100 pips down until using a dip to buy results in profits. The pair was unable to breach the previous swing high at 1.1279 in March 2014. It made high 1.1270 and started moving to a downside. We recommend fresh buying only above 1.1280. As long as the pair trades below 1.1270, it represents a double top in the weekly chart. And in the monthly chart, as long as it trades below 1.1279, it represents a double top.
For an intraday view, the price closed and is trading below 12ema and 35DEMA. In the h4 chart, the price is facing strong resistance at right shoulder. We can observe hns pattern in the h4 chart. The level 1.1223 is the left shoulder and 1.1211 is the right shoulder. Safe buying would trigger above 1.1211 target 1.1223, 1.1244 and 1.1265 levels. In case the price breaches 1.1280, the pair would extend its rally by another 100-150 pips. We strongly recommend selling below the neck line (NL) for 150 pips down side target.
Trade-
Buying above 1.1211
Selling below 1.1149
Panic below 1.1072
