The pair breached the recorded top on November 16, 2009 at 0.9405 which indicates that the downside correction triggered from the aforesaid top has settled for 38.2% Fibonacci as shown on the secondary image above. 
Therefore, we expect the pair to move further to the upside over short term basis, targeting the main resistance for the ascending channel at 0.9640 then 0.9850.Momentum indicators signal volatility around the breached resistance which turned into strong support which will be the base for the upside move towards the new targets. The 100 Days MA supports the ascending channel as it resides with its support around 0.9000 which is the most critical area to preserve the bullishness over medium term basis. The upside move was supported by the positive pattern with the neckline at 0.9220 and accordingly the short term bullishness requires this level to remain intact with daily closing.
By: Yasir Mubarak
Senior Technical Analyst
[email protected]
www.ecpulse.com