The pivotal support areas of 109.45-76.4% Fibonacci from 108.30 to 113.35- hold strongly yesterday and the pair succeeded in closing above it comfortably. Not only that but it pushed the pair upwards strongly reviving that it might act as a technical base, that could activate the scenario of forming the CD leg of the AB=CD pattern. There is a contradiction between Stochastic and AROON for the time being, forcing us to say that areas of 110.75-value of SMA 50- should be breached decisively to confirm the suggested positive scenario over intraday basis
The trading range for today is among key support at 108.50 and key resistance now at 113.60.
The general trend over short term basis is to the downside, targeting 97.90 as far as areas of 132.50 remain intact.
Support110.00109.45109.00108.50107.60Resistance110.75111.05111.60112.10112.85RecommendationBased on the charts and explanations above our opinion is, buying the pair with a breakout above 110.75 targeting 112.80 and stop loss below 109.40 might be appropriate.