The pair rebounded successfully to the upside yesterday in line with expectations after reaching areas around SMA 50, while Stochastic is still providing positive signs over daily basis, which supports the current upside move to remain valid and extend today. A breach of 131.10 should confirm the extension of the upside move, targeting mainly areas around 132.00 and 133.00, noting that a breach of 129.10 weakens the suggested incline and might trigger the return of negativity.
The trading range for today is among the major support at 129.10 and the major resistance at 133.00.
The short-term trend is to the downside as far as 150.00 remains intact targeting 112.00.
|Recommendation||Based on the charts and explanations above, our opinion is buying the pair with 4-hour closing above 131.10, targeting 132.00 and then 133.05 and stop loss below 130.35 might be appropriate|
Technical analysis for precious metals with major support and resistance levels and recommendations for 18-08-2009