Middle East Tension!
The Last week was bit disappointed with this pair, apparently the tension between US &IRAN in the wake of Iranian General Killing by the US.
This issue has jolted the whole world and raising concerns the war even some expert says its a step towards 3rd world war.
Notably, we have seen a lot of criticism from the US side. Whereas the Iranian Supreme Leader has said that he would take very stern action and the revenge of his top general killing.
Oil has seen a major catalyst as the tension growing just glimpse we’ve seen on Friday a brief upward and surged of about 4 percent.
Some analysist feared that this escalation would take a very stern and negative impact on the global economy and hardly found any substantial growth on a yearly basis.
Presumably, we see a lot of volatility in the field of forex as well
As far as this particular pair is concerned it seems clear that the upcoming week would be very jolty for this pair as the pair is going to enter into Risk-off mode.
In order for getting good risk-off trades of this pair, we need to pauce our technical levels until a clear direction would emerge.
Therefore we would probably be “if and but” gripped this pair.
If Tension escalates!
Firstly you to enhance your chart timing while analyzing this pair quite extensively.
it should be appropriate to review this pair on a bigger time frame from hourly to daily (at least)
As long as the tension of Us-Iran persist it seems this area (highlighted with a red rectangle ) seems to be very very critical.
In our view, the maximum upward scenario could be around144.41 zone.
where we have also got a strong upward trend line break out that has been occurred during the last Friday’s Trading.
Thus if you are in buying camping you should wait to clear breaking of this level.
You must be ensured that the market close above of the last upper wick is situated around 148.
This perhaps attracts more buyers but we expect hard to break amid tension escalation.
Look at above! Finding fibo Golden Ratio!
As long as this tension going on its better to wait for the golden ratio.
If you are in buying camp the market could either come out around the 50% level.
That is situated in 137.45 Zone or the 61.8% ratio which is located near the 135 zones.
How about Sellers why don’t we take the golden ratio as selling Target!
On the contrary, the sellers or bargain hunters could see the pair pressing down towards the 137/135 region.
which is a “risk-off” trade however for both sellers and buyers it is imperative to have a stop loss.
thus for sellers, we have in view to
if you are in selling camp it should be better to short the pair below146.74.
with strict stop loss at 148.39 whereas the target could be around. 137/135 zone.
Lastly keeping in view the positivity aligned with the Brexit.
if dominate we could see this pair a skyrocketing flying.
for those who willing to buy our technical analysis just noising to have a clear break out of 148 area.
However, it could take another opportunity if consequently.
( due to the prevailing geopolitical scenario) the foundation of the gold ratio around 137/135.
so far soaring this pair we would suggest to:-
Lastly, our view for those who willing to soaring this market is to buying this pair around, 135/137 area.
with the stop loss of 128.95 and for the target of 152/156 respectively.
Keep distancing yourself from any abrupt geopolitical news.
Particularly the one (US-IRAN) which is really really having lot of consequences for both buyers and sellers.