In line with yesterday's scenario, the pair has moved sharply upwards after touching our suggested entry levels around 77.40-77.30 where it has cleared 38.2% Fibonacci retracement of the entire upside rally from 75.50 to 79.50 as seen on the provided four-hour chart. Now, momentum indicators are reflecting clear overbought case and they need relief. Consequently, the pair may move mildly lower during the early session, but the recovery from 76.55 may continue later. Our potential support zones reside at 77.80, while the pair is being carried by SMA 100.
The trading range for today is among key support at 76.40 and key resistance now at 79.55.
The general trend over short term basis is to the upsidetargeting 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 around 77.80 targeting 79.55 and stop loss below 76.65 might be appropriate.|