Bulls gain traction after hammer formation, Shooting star counters, and the trend has been drifting non-directional mode, while the current prices are well above 21DMAs amid gravestone doji formation.
For now, gravestone doji candle has occurred yesterday at 130.2580 levels that may get you bear-trapped as this cannot afford to be isolated, both leading and lagging oscillators are little indecisive but slightly in bulls’ favor.
Thereby, the trend may go non-directional but any dramatic moves in either direction appear to be unlikely, instead, minor dips amid major uptrend seem to be on cards upon bullish EMA crossover (on monthly terms), we see confirmation from both momentum and trend oscillators.
In addition to that, bulls in consolidation phase manage to break-out above 50% Fibonacci retracements. For now, the rallies likely to extend further on bullish EMA crossover.
From the last couple of days, the trend remained in sideways (refer rectangular portion on the daily chart), even if you see any abrupt slumps, it should not be panicky as the strong support is seen at 129.4178 levels and the major trend goes in the consolidation phase.
Both leading, as well as lagging indicators on monthly time frames, have been converging upwards that signifies the intensified momentum in buying sentiments of the uptrend.
Trade tips: Contemplating above technical rationale, we could foresee more upside traction in spot prices, thus, initiating longs in mid-month futures contracts are advocated with a view to arresting bullish risks.
Currency Strength Index: FxWirePro's hourly EUR spot index is flashing 37 (bullish), while hourly JPY spot index was at 60 (bullish) at 06:14 GMT. For more details on the index, please refer below weblink:
http://www.fxwirepro.com/currencyindex.
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