After touching 50% correction of the CD Leg during last week’s trading, the pair rebounded sharply to the upside and is trading stably this week above the first target of the bearish harmonic Bat Pattern that was achieved earlier at 1.0140. Till now the pair is trading below 23.6% correction at 1.0215, as stability below it keeps the possibility of extending the pattern’s effect. There is a clear contradiction between technical indicators, whereas momentum indicators are showing a bullish bias while Linear Regression Indicators shows extending negativity. Therefore, we prefer to remain neutral in our weekly report waiting for confirmation signals.
The trading range for this week is between the key support at 1.0015 and the key resistance at 1.0310.
The general trend over short term basis is to the upside with steady daily closing above levels 0.9800 targeting 1.0485.