SMA 50 stopped the pair's negative momentum again, where the royal pair rebounded to the upside approaching the critical resistance around 0.8420. In general, we still need the pair to breach one of the critical levels in order to confirm the pair's next move. The first level is the main resistance at 0.8420, while a breach of this level should activate our positive scenario, targeting 0.8600. The second level is the support of 0.8310, where a breach of this level should send the pair again inside the descending channel.
The trading range for this week is among the major support at 0.8170 and the major resistance at 0.8600.
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 selling the pair with 4-hour closing below 0.8310, and taking profit at 0.8170 and then 0.8100 and stop loss above 0.8420 might be appropriate. Or buying the pair with 4-hour closing above 0.8420, targeting 0.8550 and them 0.8660 and stop loss with 4-hour closing below 0.8310 might be appropriate.|