On the daily chart, it is noticeable that from last couple of months the pair is declining continuously. This downfall of price action is finally trading at the support line (Yellow Line) and seems holding the fall here. This support line worked brilliantly earlier whenever the contraction occurred. Price action is now trading at lower band of Bollinger band-which tells us that Pair is oversold and likely to get out from this oversold zone. Momentum Indicators looks oversold or near to oversold zone- Stochastic slow is at 12 and Relative Strength Index of 14 Period is at 31. MACD (5,35,5) hovering below 0 line with Bullish divergence where price action is making lower lows and MACD is forming higher lows (Green lines showing clear divergence in chart). It is being observed that recently price action gave a breakout of a support line and hasn’t taken any correction yet so we can say that above views might be a correction. On the other hand we can see the price action is trading below its 200 day simple moving average, also acted as a major support and resistance earlier and price is likely to retest SMA level.
Forecast- According to the view, the pair might take a upside move from 78.50 for the target of 80 Mark and 80.30 will be the second target. Any close below 78.25 will negate the above view.