The pair dropped sharply yesterday to trade around the previously breached descending resistance, which turns into support, now near 0.9900 area. The recent bullish breakout of the falling wedge formation usually hints for further gains; however we need a confirmation breach above 1.0050 resistance, and the support of the range-bound at 0.9840 to hold for any bullish rebound to remain possible. In general we still hold onto our bullish expectations.
The trading range for the day is expected among the key support at 0.9840 resistance at 1.0080.
The short term trend is to the upside targeting 1.0650 with steady daily closing above 0.9900.
|Recommendation||Based on the charts and explanations above, we recommend buying the pair around 0.9850 targeting 1.0000 and 1.0150. Stop loss four-hour closing below 0.9840.|