Morning Report

After retesting the previously breached neckline for the bullish pattern last Friday, the pair was able to rebound from 1.0850 nearing 1.1000, as expected. Momentum indicators are showing the pair within an overbought area, which may result in a slight downside correction towards 1.0920 before rebounding back to the upside on the intraday basis targeting the 161.8% and 176.4% extensions at 1.1080 and 1.1120 respectively, which will then complete a bearish harmonic pattern with a PRZ at the above mentioned levels. This incline is valid as far as 1.0830 is intact.

The trading range for today is among the key support at 1.0700 and the key resistance at 1.1220

The general trend is to the downside as far as 1.1870 remains intact with targets at 1.0300

RecommendationBased on the charts and explanations above, our opinion is buying the pair from 1.0920 to 1.1080 and stop loss below 1.0830 might be appropriate.