After went up close to 25% during 2013 the pair looks strong for more upside in 2014. We consistently see higher highs and higher lows with strong RSI and price action in a clear up channel. On up days the pair adds between 0.2%-0.35% to his value, this pattern should help us with our expectation for today. The opening price for today is below the middle range of our channel with strong RSI around 60, if the pair will be able to trade above the 105.4 line we should expect up move with targets at 105.61 and 105.76. Below the 105.4 line we have support at 105.28 and 105.21 (our channel).
We getting mix technical picture from this pair, both have strong economic momentum and it reflects on the chart. For more than 2 weeks we saw price action in a range between 0.8381 to 0.8334 but during the last 2 trading session the pair fall down with low liquidity, so will need better conformation before looking for the next leg down. The SAR (green dots) are close to the price action and should represent our first resistance at 0.8319 and above that the floor of our range at 0.8334. On the down side the supports are 0.8276 and 0.8261