After rebounding to the upside from 38.2% Fibonacci correction for the entire upside move which started from 0.6007 to 0.9405, the pair found difficulty in surpassing the strong resistance at 0.8870 which is the 61.8% correction for the downside move which started from the mentioned top. 
This level was supported by negative signals from momentum indicators which is gradually unloading negative momentum as seen on the daily chart above.Therefore, we see a possible upside reversal to resume the bullish move over the coming period. A bullish formation is seen with the neckline at 0.8870 which might push the pair to the upside into the main upside move targeting 0.9040 and then farther ahead at the previous top of 0.9405. For our expectations to prevail the pair must breach 100 MA at 0.8765 and set a clear breach for the suggested neckline at 0.8870 and third is stability above 0.8310.
By: Yasir Mubarak
Senior Technical Analyst
[email protected]
www.ecpulse.com