The pair has moved downwards re-testing SMA 100 which provided it with a very good support. Actually, yesterday's decline was useful for bulls as it activated a positive divergence on Stochastic that could assist the pair to beat the initial resistance level of 77.80 again. The consecutive four-hour closings above 50% Fibonacci retracement of the upside wave from 75.50 to 79.50 encourage us to suggest potential upsidemove but not before clearing 77.80 followed by 78.30 over coming hours.
The trading range for today is among key support at 76.10 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 75.20 remain intact.
|Recommendation||Based on the charts and explanations above our opinion is, buying the pair above 77.80 targeting 79.55 and stop loss below 76.65 might be appropriate.|