The pair started the day positively; breaching the resistance of the descending channel as shown above after SMA 50 provided a strong support and stopped the bearishness yesterday. Stochastic turned positive over 4-hour basis, which supports our expectations for an intraday upside move today, targeting mainly the level of 0.8410 in attempts to confirm the breach of this level and then moving towards the main targets at 0.8550. Consolidation above 0.8325 is necessary for the pair to achieve the suggested targets.
The trading range for today is among the major support at 0.8325 and the major resistance at 0.8550.
The short-term trend is to the upside as far as 0.8170 remains intact, targeting 1.0370.
|Recommendation||Based on the chart and explanations above, our opinion is buying the pair with 4-hour closing above 0.8410, and taking profit in stages at (0.8550 and 0.8635) and stop loss with a 4-hour closing below 0.8320 might be appropriate this week.|