The pair dropped yesterday to retest the previously breached resistance of the falling wedge formation which turns now into a support at 0.8675. After this decline stochastic entered oversold areas. These factors along with a possible bullish technical pattern -we mentioned previously- its neckline at 0.8885 suggests a bullish intraday move in general for today, targeting initially the suggested neckline. Breaching below 0.8675 may invalidate the scenario.
Trading range for the day is among the major support at 0.8675 and the major resistance at 0.8885.
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 0.8675 targeting 0.8795 and 0.8885. Stop loss below 0.8600 may be appropriate.|