The pair couldn't maintain levels above 0.8890 yesterday, where it went mildly downwards touching the previous broken resistance line of the descending channel that organized the movements from 0.9315 areas. Actually, the negativity of RSI 14 was moderately fixed by this re-test of the downtrend line, but we need to witness a breakout above the value of SMA 50 at 0.8815 and preferably above 0.8835 to make sure that the pivotal resistance areas around 0.8930 will be reached. Conversely, a break below 0.8740-0.8725 with a four-hour closing will give us reason for concern.
The trading range for today is among key support at 0.8560 and key resistance now at 0.9080.
The general trend over short term basis is to the upside targeting 0.9400 as far as areas of 0.8020 remain intact.
|Recommendation||Based on the charts and explanations above our opinion is, buying the pair above 0.8835 targeting 0.9030 and stop loss below 0.8725 might be appropriate.|