Weekly Report(16-20 Jan)
The pair reversed sharply after approaching the main retest support level that was breached lately which turns into resistance now around 0.8400-as shown on image-, while price is approaching the 50% Fibonacci for the whole move from 0.8634 to 0.9802, which coincide with the support of the main descending channel around 0.8170. We think that the door is open towards testing the aforementioned support, supported by negativity on stochastic, however, we are not sure if the pair will breach the level or rebound again, therefore, we prefer staying aside and monitor trading around 0.8170 support and 0.8405 resistance.
The trading range for the week is expected among the key support at 0.8065 and the key resistance at 0.8440.
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 staying aside awaiting more confirmations|