Morning Report

Major oversold signs for pair make us take another glance at it to explain the bullish direction's failure which we predicted yesterday, to find that the bullish direction is still expected; where the pair is currently trading above the 200% extension for the Base Impulsive Wave as the pair ended the third wave at this extension at 1.0315. From here we expect that a fourth correctional wave should start, where it makes us expect the pair to move to the upside in an attempt to retest 23.6% correction which somewhat joined with the 161.8% extension at levels around the 20 MA at 1.0450. The ascending correction direction requires 1.0315 to remain intact with four-hour closings and oversold momentum indicators insure our expectations for today.

The trading range for today is among the key support at 1.0210 and the key resistance at 1.0770.

The general trend is to the downside as far as 1.1870 remains intact with targets at 1.0000.

RecommendationBased on the charts and explanations above our opinion is buying the pair at 1.0250 and targeting 1.0360 and stop loss below 1.0175, might be appropriate