As we expected, the bullish rebound continued yesterday, but now the pair settled for areas around 78.6% Fibonacci correction at 1.0490 as shown above. A breach of this level could lead the pair to test the previously mentioned areas around 1.0570, while in case the pair was unable to climb above 1.0490, it could go through a downside correction before the return of the upside move. Stochastic is excessively overbought, in the time the Relative Strength Index is positively biased. Therefore, we remain neutral today, due to the high risk associated to our expectations in addition to the technical conflict seen on momentum indicators.
The trading range for today is among the major support at 1.0275 and the major resistance at 1.0690.
The short-term trend is to the downside as far as 1.0665 remains intact targeting 0.9000.
|Recommendation||Based on the charts and explanations above, we remain neutral awaiting more confirmations|