Trend Direction: Bullish.
Trend Reversal Level: 0.8630
Key Support Levels: 0.8800, 0.8760, 0.8740, 0.8700, 0.8650
Key Resistance Levels: 0.8850, 0.8900, 0.9000
Entry Strategy: Buying dips in an uptrend above our trend reversal level.
Trade Suggestion: This pair has bounced back from it support level 0.8650 and currently trading at 0.8810 level. Yesterday it broke it's resistance at 0.8800 and trading marginally above that. It has significant resistance at 0.8850 where this pair again failed to break yesterday.
The zone 0.8800 to 0.8850 would be key level to watch. Its better to stay out of this zone until market comes out of it. We need to see a breakout of this zone for a potential trade. However near term trend looks bullish, but 0.8850 is a level of great concern. It has bearsh daily trendline test coming at 0.900 level.
Our suggestion to wait for the market to break above 0.8850 to go long targeting 0.8900 followed by 0.9000.
Alternate scenario: If prices failed to break 0.8850 and breaks below 0.8800 look to go short targeting 0.8750 followed by 0.8600.