Weekly Report(23-27 March)
The pair is trading near the retest level at 98.80, after approaching the 23.6% Fibonacci correction for the move from 111.55 and 97.00. The 50 EMA coincides with the retest level and stochastic enters oversold areas. Accordingly, we expect a bullish correction this week initially targeting a breach above 100.45 followed by the 38.2% Fibonacci at 102.55. Taking into consideration that breaching 98.80 will open the door towards retesting the resistance of the breached descending channel which turns into support now at 97.45.
The trading range for the week is expected among the key support at 97.45 the key resistance at 102.55.
The short term trend is to the downside as far as 150.00remains intact with targets at 112.00.
|Recommendation||Based on the charts and explanations above we recommend buying the pair around 98.80 targeting 100.45 and stop loss below 97.80 may be appropriate.|