8-Hour Analysis:
Big Picture: The bulls have been making some powerful challenges against the resistances above, but despite such strong advances, a breakthrough has yet to be made. The sooner bulls get acceptance beyond the trendline resistances, the better it will be for the pair. Furthermore, the Relative Strength Index (RSI) has breached the 50 level convincingly after almost two months, indicating that price may acquire some durable momentum provided immediate congestion is surpassed. Failure to break through the congestion zone, on the other hand, would slow down the momentum and perhaps lead to some downside support re-tests.
On the Upside the congestion zone has now expanded to levels ranging from 27,290 to 27,430. The combination of the 8-hourly EMA-200 & EMA-250 has proven challenging for the bulls. This level also has the 50% Fibonacci levels. Bulls have made a few tries to break through these levels in the last three sessions, but have failed. Furthermore, this has resulted in short-term bearish divergence on the 8-hourly time-frame, showing some signs of exhaustion. Surpassing this range and then the trendline resistances would be next. A clean break above the trendlines is expected to continue the upside towards 27,815 followed by to 28,300 and potentially 28,850.
On the Downside the level of 26,940 is providing some reasonable support towards the price. Despite some short-term selling, this level has held price for last several hours. Furthermore, as the price approaches this level, volumes surge, signaling dip buying from active buyers. Holding onto these supports enhances the possibility of an upward break, while losing 26,940 pushes the price to drop towards 26,680.
