The pair has formed a long lower shadow on the daily candlestick after touching the support line which started at the significant trough of 0.8925 as seen on the provided daily chart. Stochastic is on the way to move outside the oversold territories after overlapping positively. Therefore, more upside actions might be witnessed over intraday basis. A break above 0.9105 will confirm and accelerate; whilst clearing 0.9030 will weaken our outlook.
The trading range for today is among key support at 0.8965 and key resistance at 0.9200.
The general trend over short term basis is to the upside, targeting 0.9950 as far as areas of 0.8850 remain intact.
|Recommendation||Based on the charts and explanations above our opinion is, buying the pair above 0.9105 targeting 0.9260 and stop loss below 0.9000 might be appropriate.|
Technical analysis for precious metals with major support and resistance levels and recommendations for 18-08-2009