The pair inclined sharply yesterday, yet is trading within an overbought area that may result in a downside correction. On the other hand, trading was able to maintain levels above the 50 and 20 MA at 1.0115 and 1.0090 respectively, where we see the 20 MA currently adjusting to near the 50 MA, where according to the Dow Theory this may continue the uptrend for some time. The resistance level at 1.0220 may limit further inclines, yet as we see on the secondary image; the RSI on the daily charts is adjusting to the upside which may make the pair breach the resistance to hold our outlook for an incline yet after correcting to the downside to relieve momentum indicators on the intraday basis.
The trading range for today is among the key support at 1.0035 and the key resistance at 1.0435
The general trend is to the downside as far as 1.1225 remains intact with targets at 0.9600
|Recommendation||Based on the charts and explanations above, our opinion is buying the pair from 1.0135 to 1.0360 and stop loss below 1.0035 might be appropriate.|