This pattern appeared with clear convergence from the leading oscillators, current prices spike above MA curves.
and are converging to the on-going upswings while is also showing crossover on both weekly as well as the monthly graph that is a signal for on-going uptrend continuation.
One can also observe massive volumes formation which is conformity to the uptrend both weekly as well as monthly graphs.
Since the current prices on monthly charts are testing resistances at 78.6% Fibonacci levels, so the bears can wind their horns in the short run.
The bears lined up ahead of next week’s ECB , so any dips are deemed as momentary due to the economic event, whereas any break-out below 7WMA should be a cause of concern for southward targets.
Hence, we would maintain our long-term view on this pair as it is likely to break out the resistance at 0.8390 levels as there are more favourable signals to evidence so.
Hence, the long-term investors can eye on longs in mid-month for targets of 180-200 pips with the stiff stop-loss at 0.8090 levels.