The bullish momentum appearing on the candlesticks structures has assisted the pair to take the pivotal resistance-turned into support- at 78.60 easily. Meanwhile, Vortex continues presenting a clear bullish signal supporting the upside wave started at 76.00 zones but for the first time since April, 2011, RSI 14 becomes valued at 75.00 as seen on the provided daily chart while Stochastic reflects clear overbought case over four-hour and daily charts. Henceforth, we may witness heavy fluctuation to unload overbought signs of momentum indicators before resuming the bullishness softly targeting 79.55- our short term technical target defined on February, 02, 2012. A break of 79.55 will weaken the psychological levels of 80.00.
The trading range for today is among key support at 77.60 and key resistance now at 80.50.
The general trend over short term basis is to the upside, targeting 87.45 as far as areas of 75.20 remain intact.
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|Recommendation||Based on the charts and explanations above our opinion is, buying the pair around 78.60 targeting 80.20 and stop loss below 77.70 might be appropriate.|