The pair continues fluctuating sharply since yesterday, but this fluctuation has fixed the negative sign that appeared on Stochastic yesterday, changing it into positive. There are two more technical factors that may help the pair to achieve the awaited reversal as follows:
The positive divergence on MACD.
The solidity of support areas around 76.20.
Only a break above 76.95 will prove the efficiency of our suggested Elliott scenario which remains valid; whilst breaching through 75.80 with four hour closing will negate it completely and will trigger a panic sell-off.
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 upsidetargeting 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 76.95 targeting 78.80 and stop loss below 75.80 might be appropriate.|