Respecting our yesterday's suggested scenario, the royal pair went firstly to the downside to relieve momentum indicators, where it found a solid support above SMA 50 and after that, it soared once more, attacking the neckline areas of the bullish pattern seen on the provided four hour chart. Now, all we need is a four hour closing above this neckline to send the pair upwards towards the projected technical target of the pattern. The candlestick formations along with the positive sign of Stochastic may assist the pair to penetrate these critical areas. 0.8550 followed by 0.8585 are under microscope once this breakout occurs.
The trading range for today is among the key support at 0.8355 and key resistance now at 0.8630.
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 0.8495 targeting 0.8620 and stop loss below 0.8400 might be appropriate.|