The pair moved mildly downwards, touching areas around the initial support of 76.75-76.65 zones assisting Stochastic to enter oversold areas. SMA 20 is currently valued at 76.95 and we need a breakout above it to confirm the awaited huge reversal discussed several times before, based on the classical possibility of forming the head and shoulders bottom pattern and the suggested Elliott count. A break of 77.20 will accelerate the bullishnesswhilst breaching 75.80 will negate the scenario.
The trading range for today is among key support at 75.25 and key resistance now at 78.45.
The general trend over short term basis is to the upside, targeting 87.45 as far as areas of 75.20 remain intact.
|Recommendation||Based on the charts and explanations above our opinion is, buying the pair above 76.95 targeting 78.80 and stop loss below 75.80 might be appropriate.|