The pair reached near the 104.95 main support before reversing to the upside to breach the resistance of the descending channel. The pair is range-trading as shown on image, a breach above the resistance of the range at 106.50 will confirm the upside move for today. Stochastic is bullish however its within overbought area and this may add more difficulty to the bullish attempts to breach the aforementioned resistance. In general, we expect a bullish move so long as daily closing remain above 105.85.
The trading range for the day may be among the 104.95 support and 108.85 resistance.
The short term trend is to the downside targeting 94.80 so long as 123.30 remain intact.
|Recommendation||Based on the charts and explanations above we recommend buying the pair with a breach above 106.50 targeting 107.90 and stop loss below 105.85 may be appropriate.|