The pair is in a real need for a corrective downside action to re-test the broken trend line as seen on the secondary image while being supported by a shooting star candlestick appearing on the four-hour chart. These anticipated negative movements are targeting 0.8830 zones in order to gather enough momentum to continue the short term bullish scenario of the cup with handle pattern towards the technical target at 0.9070. To recap, we think that the intraday basis is bearish but the bigger picture is positive.
Trading range is among the key support at 0.8760 and key resistance now at 0.9070.
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.
|Recommendation||Based on the charts and explanations above our opinion is, selling the pair from 0.8930 targeting 0.8835 and stop loss above 0.9025 might be appropriate.|