The pair has found a very solid support between 1.6185 and 1.6200 zones where it started to incline steadily as we anticipated yesterday. Stability above 61.8% Fibonacci retracement of the entire downside wave from 1.6745 to 1.5230 continues opening the door towards 76.4% Fibonacci level. Ultimately, Stochastic may cause some kind of fluctuation but it may not be able to change the current upside attempts.
The trading range for today is among key support at 1.6075 and key resistance at 1.6400.
The general trend over short term basis is to the downside, targeting 1.4225 as far as areas of 1.6875 remain intact.
|Recommendation||Based on the charts and explanations above our opinion is, buying the pair around 1.6200 targeting 1.6390 and stop loss below 1.6120 might be appropriate.|
Technical analysis for precious metals with major support and resistance levels and recommendations for 18-08-2009