The pair rallied to touch the resistance of the minor asending channel we mentioned yesterday, where momentum indicators are overbought over four-hour basis, this signals a possible downside reversal among the channel, Therefore we may witness a test of the support of the channel at 0.8750 before resuming the intraday upside move we are expecting for today. The 50 EMA supports the bullish wave that is targeting 0.8885 and 0.9000. Breaching 0.8750 may delay the awaited targets.
Trading range for the day is among the major support at 0.8680 and the major resistance at 0.9000.
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 0.8680 may be appropriate.|