The bounce from the bottom started to offer the probability of forming a head and shoulders bottom pattern. As we mentioned before it will not be defined as an inverted head and shoulders unless the breakout above the neckline areas and for the time being, we believe that the right shoulder is under preparation. These positive technical factors that argue us to predicate potential bullish actions over intraday basis, supported by the following factors:
1- The current bullish candlestick formation.
2- The positive overlapping, which appears on Stochastic.
3- ADX is on its way to confirm this direction.
Technical note: If the pattern is activated and the neckline is breached, the pair will meet the scientific target around 0.8390.
The trading range for today is among the key support at 0.8115 and key resistance now at 0.8360.
The general trend over short term basis is to the downside, targeting 0.7780 as far as areas of0.8965remain intact.
|Recommendation||Based on the charts and explanations above our opinion is, buying the pair with a break of 0.8255 targeting 0.8360 and stop loss below 0.8175 might be appropriate|