After 1.4375 resistance proved its resilience yesterday, the euro versus the dollar reversed sharply to breach the key support level at 1.4250, and declined further due to the formation of a bearish technical pattern at that level. The pair remains above major support levels - 61.8% Fibonacci correction, in addition to the key support for the ascending channel - which keeps the short term upside trend intact; we expect the reversal to be between 1.4170 and 1.4135; the first target is breaching 1.4375, and then further towards 1.4650. Trading above level 1.4135 is vital in maintaining the pair's upside trend.
The trading range for today is among the key support at 1.4020 and the key resistance at 1.4620.
The general trend is to the downside as far as 1.4720 remains intact with targets at 1.2120.
|Recommendation||Based on the charts and explanations above our opinion is buying the pair from 1.4170 To 1.4375 and stop loss below 1.4100, might be appropriate|
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