Market is still trapped within a very narrow range since the opening of this week, indicating that a price explosion is under preparation for the time being. We believe that, this explosion may occur bullishly, but not before breaching 77.20-77.40 zones. It seems that there will be a chance for drawing a double bottom with a possibility of forming positive divergence too. As we discussed earlier that, it is too early to judge if the classical pattern will be completed or not as a break of 75.80-76.00 areas will negate bullish outlook.
The trading range for today is among key support at 75.25 and key resistance now at 79.55.
The general trend over short term basis is to the upside, targeting 87.45 as far as areas of 76.40 remain intact.
|Recommendation||Based on the charts and explanations above our opinion is, buying the pair above 77.20 targeting 79.55 and stop loss below 75.80 might be appropriate.|