The pair surged to the upside after breaching the key resistance for the ascending channel, where it is currently facing the 61.8% correction which is known for its strength and may send the pair to correct to the downside; whereas the key resistance for the trend at 1.0755 is protecting the mentioned correction level and from here we expect the pair to correct to the downside to gather enough bullish momentum. The RSI and Stochastic are confirming the decline. Overall, and despite our expectations for a downside correction, we see the pair is to rebound to the upside once again supported by MACD and the newly formed bullish channel.
The trading range for today is among the key support at 1.0410 and the key resistance at 1.0980
The general trend is to the downside as far as 1.1870 remains intact with targets at 1.0000
|Recommendation||Based on the charts and explanations above, our opinion is buying the pair from 1.0600 to 1.0755 and stop loss below 1.0530 might be appropriate.|