Dramatic upside recovery from 122.30 zones, succeeded in forming a bullish harmonic structure over daily basis. The provided graph shows the Fibonacci symmetry that created this bullish pattern. Thecontinuous inclines took the pair towards 76.4% Fibonacci retracement of CD leg, where we believe that the pair will achieve some kind of calm behaviors due to Fibonacci rules before moving higher towards 100% Fibonacci at 135.25-135.50 zones. Stochastic and RSI 14 are positive; while AROON down started to move downwards, solidifying our new harmonic scenario. Remain cautious since the market is moving aggressively due to the Japanese crisis.
The trading range for today is among key support at 125.45 and key resistance at 138.65.
The general trend over short term basis is to the downside, targeting 118.80 as far as areas of 150.75 areas remain intact.
|Recommendation||Based on the charts and explanations above our opinion is, buying the pair around 131.05 targeting 135.20 and stop loss below 128.00 might be appropriate.|