Morning Report

The pair continued trading positively after achieving a mild correction yesterday. This correction should be seen as a required technical process to relieve RSI 14 indicator which started moving downwards from the value of 70.00 as seen on the provided four-hour chart. We have two major bullish technical factors in addition to stability above SMA 50 and SMA 100 as follows:

Trading continued seen within the short term upside channel.

Stability above 100% Fibonacci expansion level of A-B-C points.

Actually, this classical outlook matches reaching the second potential reversal zones -D- of the harmonic structure discussed earlier and we recommend reviewing the weekly report for more details about the butterfly pattern.

The trading range for today is among the major support at 0.8975 and the major resistance at 0.9400.

The short-term trend is to the upside with steady weekly closing above 0.8020 targeting 0.9400.

Previous Report

Weekly Report

RecommendationBased on the charts and explanations above our opinion is, buying the pair around 0.9155 targeting 0.9370 and stop loss below 0.9000 might be appropriate.