Morning Report

The 61.8% correction level was able to halt further declines for the pair; after Friday's NFP resulting in the pair rebounding to form a bullish technical pattern with a neckline at 1.4345, as seen in the image above. The stochastic indicator shows the pair being overbought, which may result in volatile trading as the pair attempts to breach the neckline, yet we expect the pair is to incline on the intraday basis targeting 1.4650 confirmed by a four hour close above 1.4300.

The trading range for today is among the key support at 1.3975 and the key resistance at 1.4650

The general trend is to the downside as far as 1.4720 remains intact with targets at 1.2120

RecommendationBased on the charts and explanations above, our opinion is buying the pair with the breach of 1.4345 to 1.4450 and stop loss below 1.4250 might be appropriate.