As shown on the chart, the pair is stuck among the neckline for the bearish technical pattern -we mentioned yesterday- and the 38.2% Fibonacci level between 0.8680 and 0.8690 respectively. On the other hand, the 50 EMA pressures intraday trading negatively, while Stochastic continues to be positive. Therefore, we will monitor the price around the aforementioned levels to confirm the next move. Breaching 0.8690 will push the pair towards 0.8790 and 0.8885, while a breach of 0.8680 may lead to a test of the main support around 0.8595.
The expected trading range for the day is among the key support at 0.8595 and the key resistance at 0.8790.
The short term trend is to the upside so far as 0.8165 remains intact targeting 1.0370.
|Recommendation||Based on the charts and explanations above we recommend buying the pair with hourly closing above 0.8690 targeting 0.8790 and stop loss with hourly closing below 0.8680 OR selling the pair with hourly closing below 0.8680 targeting 0.8595 and stop loss with hourly closing above 0.8690|