As we mentioned in our previous report, the pair declined as expected and is currently approaching the upside trend's main support at 1.3970-60. Moreover, the pair approaches the several support levels around 1.4025 -mentioned in our weekly report- which could force the pair to rebound to the upside. Consolidation above the critical support as shown above in red, and also above the gap seen yesterday are reasons behind our positive expectations today. Stochastic is within oversold areas, while the relative strength index approaches 30 points level, which supports our expectations.
The trading range for today is among the major support at 1.3910 and the major resistance at 1.4365
The short-term trend is to the upside with steady daily closing above 1.2795 targeting 1.5135.
|Recommendation||Based on the charts and explanations above we recommend buying the pair around 1.4025, and take profit in stages at (1.4150 and 1.4255) and stop loss with 4-hour closing below 1.3910 might be appropriate.|