Recently, this pair has ended its downtrend after the US released its Unemployment claims data. It failed to meet the expectations of analysts as the actual unemployment claims were 336,000, while analysts expected 329,000. It is also more than the unemployment claims data released previously of 323,000. That being said, it sent this currency pair along with other major pairs into consolidation phase as market participants are probably hesitant whether the US economy is improving as expected due to the tapering of the Quantitative Easing. Fundamentals aside, the H1 chart shows that this pair is in the consolidation phase as prices hovers around 0.89905 and 0.90431.
As the price is now nearer to the 0.89905 mark, I would recommend a buy for this currency pair as the 20-SMA has crossed the 50-SMA, signalling a BUY for this pair.
Due to the market's uncertainty of the conditions in US, I would recommend a TAKE PROFIT at 0.90431.
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