The rate made multiple bottoms in area 0.8553 and rose to test the static resistance in area 0.8811.
At the moment the pair is trading at 0.8718, down by 0.6%, but is off its intraday lows. More important aspect, is that has found support on its 21 day SMA.
In case of bullish breakout above 0.8811 the rate would likely test then area 0.8930, the 23.6% Fibonacci retrecement of the bearish wave started in the last quarter of 2022.
If selling pressure would come back, beneath the 2023 low 0.8553 is likely to see a development of a bearish leg that would see as first psychological level area 0.85.
A bullish trend has to develop higher highs and higher lows and in this particular case there could be the validation of higher lows in case the pair manage would manage to rise in the next sessions. Cannot be excluded however a lateral phase where only trading range opportunities would be profitable if executed with good market timing.
