In line with our yesterday's bullish classical scenario of the falling wedge pattern, the royal pair soared, breaching the upper line -resistance line- of the pattern as seen on the provided four hour chart. Now, a slight downside recovery is urgently needed to relieve momentum indicators before resuming the upside rally, which is targeting 0.8510 zones. SMA 50 could be the floor, which the pair will depend on it to build a new technical base to continue its projected bullishness, discussed in details in the weekly report and we recommend reviewing it.
The trading range for today is among the key support at 0.8325 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.
|Recommendation||Based on the charts and explanations above our opinion is, buying the pair around 0.8420 targeting 0.8510 and stop loss below 0.8350 might be appropriate.|