It seems as if we drew the graph of this pair since the opening of this week as it succeeded in touching the suggested technical objective, mentioned in the weekly report at 0.8500-0.8510 zones, where we discussed the probability of showing some kind of correction. The pair is presently correcting the aforesaid sharp upside wave, affected by overbought signs appeared on momentum indicator. Now, we believe that this correction is interpreted to be a gathering momentum process in order to breach the neckline of a potential reversal classical pattern. SMA 50 is carrying the bullishness from below. A break of 0.8500 zones will be a very positive indication and will support the highly anticipated bullish direction over intraday basis.
The trading range for today is among the key support at 0.8325 and key resistance now at 0.8605.
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 0.8445 targeting 0.8550 and stop loss below 0.8365 might be appropriate.|