The pair ended yesterday above the support of the main ascending channel shown on image, hinting the breach was a false outbreak. Until now trading remains below the previously breached pivotal support at 0.8645 which is a neckline for a bearish technical pattern. Therefore, we will continue to monitor the pair around the sensitive levels among 0.8580 support and 0.8645 resistance to determine the upcoming direction for the pair, breaching the aforementioned support will confirm the effect the bearish pattern, while on the other hand trading above 0.8645 will signal the invalidation of the pattern.
The trading range for the week is expected among the key support at 0.8400 and the key resistance at 0.8885.
The short term trend is to the upside as far as 0.8165 remains intact with targets at 1.0370.
|Recommendation||Based on the charts and explanations above we recommend buying the pair with hourly closing above 0.8645 targeting 0.8770 and stop loss with hourly closing below 0.8580 OR selling the pair with hourly below 0.8580 targeting 0.8455 and stop loss with hourly closing above 0.8645.|