The royal pair started to respect the negative sign appeared on RSI 14 yesterday and thus, it moved gradually to the downside. This slant descend is needed to relieve the indicator and also to retest the previous broken resistance areas-turned into support- at 0.8850-0.8860. We believe that the pair will build a solid base around the current trading levels in order to resume the upside rally of the bullish harmonic 5-0 pattern, targeting 361.8% of CD leg at 0.8950-0.8965 areas. We don't want to neglect the classical continuation pattern- cup with handle- which supports our positive scenario.
The trading range for today is among the key support at 0.8730 and key resistance now at 0.9030.
The general trend over short term basis is to the downside, targeting 0.7780 as far as areas of 0.8965 remain intact.
|Recommendation||Based on the charts and explanations above our opinion is, buying the pair around 0.8850 targeting 0.8965 and stop loss below 0.8770 might be appropriate.|