The pair rallied to the upside to complete the formation of a positive falling wedge and invalidate our expectations yesterday to reach the support levels of the main ascending channel around 0.8550. Therefore, we expect positive trading today affected by the aforementioned bullish pattern. However, the 50 EMA may form an upside barrier for the pair, specially that stochastic is loosing upside momentum. We may witness a retest of 0.8755 before heading toward our expected targets at 0.8890 and 0.8975.
Trading range for the day is among the major support at 0.8665 and the major resistance at 0.8975.
The short term trend is to the upside targeting 1.0370 as long as 0.8165 remain intact.
|Recommendation||Based on the charts and explanations above we recommend buying the pair around 0.8755 targeting 0.8890 and stop loss below 0.8665 may be appropriate.|