Midday Report

The royal pair is trying to hit the 38.2% Fibonacci key level for the entire upside rally that started at 0.8399 and topped at 0.9410. A daily closing below it is needed to make our Elliott sequence invalid otherwise it will be able to climb aggressively towards 0.9260 areas. For that reason we think that today's closing is very important. We can't ignore the bullish harmonic formation and the positive crossover on Stochastic and we think it will be capable of pushing the pair to the upside over short term basis.

The trading range is among the key support at 0.8865 and key resistance now at 0.9260.

The general trend is to the upside as far as 0.8020 area remains intact with targets at 1.0000 followed by 1.0400 levels.

RecommendationBased on the charts and explanations above our opinion is, buying the pair from 0.9000 targeting 0.9110 and stop loss below 0.8920 might be appropriate