Indian Stocks Open Slightly Higher as Oil Holds Above $93
Analyzing the EURUSD daily chart, we observe that the pair is trading near to its trend line support – the trend line connected by the levels of 1.1110 tested in Apr, 1.1106 in May and 1.1102 yesterday. Making a third attempt towards the 1.1100-mark, termed as triple bottom pattern, the pair made a high wave candlestick yesterday - both the lower shadow as well as the upper shadow of the candlestick are long which indicates indecision in the market with bulls and bears fighting making the pair to close near to its opening level and around the mid-level of the range within which the prices traded. Such indecision created in the market indicates a sign of warning in the current momentum of the price action.
The price action from the start of July has been following a downtrend and has mostly created bearish candles (red candles). The triple bottom pattern too indicates a reversal in the price action. So we expect bullishness in the price action.
Another technical indicator Relative Strength Index (RSI) is at 37, hovering close to its oversold zone is indicating the bearishness to fade soon. Our view is that EURUSD pair would retest 1.1230-mark which is the level of the 63-day Simple Moving Average, acting as a resistance to the price action currently.
