The royal pair started to test SMA 50 as we anticipated yesterday in the weekly and midday reports, whilst Stochastic is approaching oversold areas gradually and thus the classical scenario of forming a potential inverted head and shoulders pattern is still in progress. We need to witness a four hour closing above the neckline of this pattern, see on our provided image to make sure that it is the convenient description for the pair's movements. To conclude, our suggested bullish scenario is in favor but not before achieving a four hour closing above 0.8510.
The trading range for today is among the key support at 0.8355 and key resistance now at 0.8550.
The general trend over short term basis is to the downside, targeting 0.7780 as far as areas of0.8965remain intact.
Support0.84450.84200.83900.83700.8355Resistance0.85000.85300.85500.85850.8605RecommendationBased on the charts and explanations above our opinion is, buying the pair with a breakout above 0.8510 targeting 0.8670 and stop loss below 0.8370 might be appropriate.