By examining the four-hour time scale, we could have been able to recognize a potential head and shoulders bottom pattern with a neckline at 0.9175. This classical pattern solidifies the bullishness over intraday basis but we need to witness a sustained breakout above 0.9175 to make sure that the upside rebound from 0.9080 is strong enough to push the pair towards the key resistance level for medium term traders at 0.9310. Of note, SMA 20 is presently carrying the bulls from below.
The trading range for today is among key support at 0.8925 and key resistance at 0.9310.
The general trend over short term basis is to the upside, targeting 0.9950 as far as areas of 0.8850 remain intact.
|Recommendation||Based on the charts and explanations above our opinion is, buying the pair around 0.9105 targeting 0.9300 and stop loss below 0.8965 might be appropriate.|