The royal pair is approaching the critical area among 0.8385 - resistance of the short term descending channel- and 0.8410- the retest level of the breached main support. Where the 50 EMA is supporting the pair from the downside and stochastic is trending upward over the four-hour timeframe. Accordingly, a bullish move is likely today, taking into consideration that a breach above the aforementioned resistance area is required first. And breaching 0.8300 to the downside will indicate the resuming trading within the short term descending channel heading towards 0.8170-0.8100.
The trading range for the day is expected among the keysupport at 0.8200 and the key resistance at 0.8550.
The short term trend is to the upside as far as 0.8165remains intact with targets at 1.0370.
|Recommendation||Based on the charts and explanations above we recommend buying the pair with four-hour closing above 0.8410 targeting 0.8550 and 0.8635 ,stop loss below 0.8300 OR selling the pair with four-hour closing below 0.8300 targeting 0.8170 and 0.8100 with stop loss above 0.8410|