Let us have a quick look at the daily chart, which clearly shows the pair finding support at rising trend line.
- A rebound from the rising trend line support of 1.1057 followed by a break above today’s high of 1.1112 would open doors for a rise to 1.1179 (trend line hurdle – drawn from Mar 2015 low-April 2015 low & extended).
- If it chews through offers around the same, a re-test of 1.1218 and a subsequent rise to 1.1256 (61.8% of 1.1714-1.0517) appears likely.
- On the downside, a break below 200-DMA at 1.1048 could be sold into for target of 1.10. A reversal from 1010 if fails to sustain above 200-DMA could be utilised to enter fresh shorts for target of 1.0974 (38.2% of 1.1714-1.0517).
- Bullish invalidation is seen only if the bird closes below 200-DMA level today.