As mentioned in yesterday's report the pair went downward breaching all 119.67 and 116.22 where now 2 signs of bullish pullback have appeared:
A- The engulfing candle that allowed some indicators to give us a tight upside momentum
B- This tight rebound started at a very important point 115.30 which represents 61.8 % expansion for the move that started at 127.65
But despite that the downside outlook for short and medium terms need to break the 119.70 area to be changed otherwise the bottom at 113.50 should be retested. Williams' percent range indicator is neutral but is on the way to give an overbought sign.
Trading range is among the key support at 113.50 and the key resistance at 121.85
The general trend is to the downside as far as 141.44 kept intact with targets at 100.00 followed by 88.97 levels
Support: 115.29, 114.87, 113.96, 113.50, 112.46
Resistance: 116.70, 117.22, 118.17, 119.11, 121.85
Recommendation: Buy the pair with a four hour close above 117.30 with targets at 118.40 and stop loss below 116.20 levels
After the panic sell off that happened yesterday, the pair breached the 0% Fibonacci level for the downward wave that started at 141.52 as we speculated in our previous report. The pair now is showing some kind of pull back from the area around 124.00 as an engulfing candle was formed clearly as shown on the chart. Yet despite that, the short and medium term outlook are still bearish as far as 130.02 remains intact. The RSI and stochastic indicators are neutral without neglecting the positive divergence formed on the RSI indicator.
Trading range for today is among key support at 122.84 and key resistance at 130.02
The general trend is to the downside as far as 165.30 kept intact with targets at 120 psychological levels.
Support: 124.70, 123.24, 121.50, 120.00, 118.63
Resistance: 126.23, 126.82, 128.48, 130.02, 131.33
Recommendation: Despite this bearish outlook, our position today is to buy the pair to benefit from the divergence with a four hour close above 126.30 with targets at 128.15 and stop loss below 125.10
As we speculated in our previous report the royal pair price action accelerated towards the 50 % Fibonacci cluster resistance at 0.9320 areas which was our second target after breaching two levels on its way as shown on the chart. Now the chart is forming a clear upside recovery pattern (Flag) towards the 61.8% level at 0.9430 areas and may be able to reach 76.4% level at 0.9570 area. However, we prefer 61.8% level in our case because the royal pair is known by the low price acceleration and previous historical corrections at 61.8 %. Our outlook is supported by the hold case formed on the Alligator indicator.
Trading range is among key support at 0.9030 and the key resistance at 0.9570
The general trend is to the upside as far as 0.8020 area kept intact with targets a 1.0000 followed by 1.0400 levels
Support: 0.9219, 0.9190, 0.99116, 0.8990, 0.8930
Resistance: 0.9325, 0.9396, 0.9456, 0.9534, 0.9628
Recommendation Buy the pair above 0.9320 with targets at 0.9420 and stop loss with a four hour close below 0.9230