The pair continues to fluctuate around the retest level of the rising wedge formation after the wedge formation was completed by breaching its support which turned now into resistance at 0.8740. Negativity on stochastic and the 50 EMA pressure the pair negatively as well. Nevertheless, the past three day closing above resistance of the wedge will push us to expect an upside intaday move today. This scenario requires two conditions, breaching 0.8885 and stability above 0.8740.
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 0.8740 targeting 0.8885 and stop loss with hourly closing below 0.8665 may be appropriate.|