The decline seen yesterday was sufficient to pressure the pair towards areas below 1.3695, but the pair returned to trade above this level today. We expect an upside correction, supported by the positivity seen on momentum indicators in addition to consolidation above the mentioned level. But, a 4-hour closing below 1.3640 should be sufficient to push the pair further to the downside towards 1.3565.
The trading range for today is among the major support at 1.3380 and the major resistance at 1.4080.
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 1.3710, and take profit in stages at (1.3825 and 1.3880) and stop loss with 4-hour closing below 1.3640 might be appropriate.|