The pair is close to a retest of the previously breached resistance of the rising wedge formation discussed yesterday. This level resides now near 0.8750. Negativity on stochastic hints that the pair may spend some time at the current levels before gathering upside momentum to support the continuation of the intraday upside wave expected for today. The upside move requires stability above 0.8750 followed by a clear breach of 0.8885- we will mention why this level is important later.
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 0.8750 targeting 0.8885 and stop loss with hourly closing below 0.8665 may be appropriate.|