Morning Report

The pair is trading near 50% Fibonacci correction shown in our daily chart above, accompanied by major overbought signs appearing through momentum indicators. This could force the pair to reverse to retest 84.50 - 83.90, but in overall stability above the previously broken downside channel's resistance makes us expect more bullish correction that targets 87.85 next. Note that resuming these targets requires a breach of 50% Fibonacci around 85.65.

The trading range for today is among the key support at 83.90 and the key resistance at 87.85.

The short term trend is to the downside as far as 89.35 remains intact with targets at 77.70.

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Weekly Report

RecommendationBased on the charts and explanations above our opinion is buying the pair with an hourly closing above 85.65 targeting 87.35 and stop loss below 84.50, might be appropriate.