Morning Report

A normal bounce was seen yesterday due to facing the important Fibonacci of 38.2% for the downside rally from 80.20 to 75.90 zones. Now, the pair started to stabilize above the key support level of 77.20 and above SMA 20 -colored in green- as seen on the provided four hour graph. Henceforth, our proposed Elliott count is still valid, supported by the classical head and shoulder bottom pattern and the positive sign on indicators. A break of 77.60 areas will accelerate the bullish wave, targeting 78.80, followed by 79.20-79.55 areas.

The trading range for today is among key support at 75.80 and key resistance now at 79.10.

The general trend over short term basis is to the upsidetargeting 87.45 as far as areas of 75.20 remain intact.

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Weekly Report

RecommendationBased 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.