The pair started this week biased to the downside as shown above on the minor image, while it closed the session on Friday above the previously breached resistance of the descending channel, which drives us to expect the upside move to continue this week, supported by Stochastic which turned positive over daily basis. SMA 50 supports the suggested bullish wave from below, while consolidation above 106.90 is necessary for our expectations to be fulfilled.
The trading range for this week is among the major support at 105.00 and the major resistance at 110.75.
The short-term trend is to the downside as far as 123.30 remains intact, targeting 94.80.
|Recommendation||Based on the chart and explanations above, our opinion is buying the pair around 106.90, and taking profit at 108.90 and then 109.75 and stop loss below 105.70 might be appropriate|