The sideways range trading still prevents the pair from giving clear signals continuously, despite the medium term bearish overview as we explained before didn't change but today's expectation is different because technically the market's opening gap is still uncovered ,hence we expect that the pair will incline towards 118.20 areas before resuming the major descending direction .
This expected upward is based on:
- The support that the pair obtained from around (115.60-116.50)
- The bullish signal appears on A.C indicator.
Trading range for today is among key support at 114.60 and key resistance now at 119.95.
The general trend is to the downside as far as 141.44 remains intact with targets at 100.00 followed by 88.97 levels.
Support: 116.50, 115.90, 115.00, 114.60, 113.50
Resistance: 117.30, 118.05, 118.90, 119.55, 119.97
Recommendation According to our analysis, we believe that it is good to buy the pair with a four hour close above 117.00 with targets at 118.20 and stop loss with a four hour close below 115.90.
As we explained yesterday in our mid-day report that the upward recovery occurred yesterday was just a normal technical try to fill the gap but it failed. Actually it succeeded in today's Asian session by reaching 131.70 areas; hence we expect that the direction today will be to the major medium term trend to the downside as the right shoulder is still forming slightly as shown on the 4h chart.
Notes: 1- A break occurs below 130.25 areas will accelerate the downside move towards our first target at 127.50
2- The Wolfe's wave target line as shown on the chart is at the same areas and below.
Trading range for today is among key support at 125.15 and key resistance at 135.50.
The general trend is to the downside as far as 148.20 remains intact with target at 116.00 levels.
Support: 130.80, 130.12, 129.28, 128.38, 127.50
Resistance: 132.13, 133.00, 134.09, 135.00, 135.62
Recommendation: According to our analysis, we believe that it is good to sell the pair with a four hour close below 131.00 with targets at 129.30 and stop loss with a four hour close above 132.40.
As we explained before that the right shoulder of the classical bullish pattern is still in progress and we guess that the decline occurred since yesterday is to help the royal pair to gather more strength as a preparation for the upside explosion.
So that the pattern will not fail as far as 0.8650 remains unbroken and breaching 0.8980 will confirm our bullish overview which is targeting 0.9206 areas.
Note: Stochastic shows oversold case.
Trading range is among the key support 0.8650 and key resistance now at 0.9206.
The general trend is to the upside as far as 0.8020 area remains intact with targets at 1.0000 followed by 1.0400 levels.
Support: 0.8850, 0.8800, 0.8764, 0.8700, 0.8644
Resistance: 0.8930, 0.8971, 0.9030, 0.9105, 0.9180
Recommendation According to our analysis, we believe that it is good to buy the pair with a four hour close above 0.8930 with targets at 0.9030 and stop loss with a four hour close below 0.8840.
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