Morning Report

The euro versus the dollar declined strongly after the U.S.labor reportlast Friday, thus breaching the main support levels at 1.4895 which met with the neckline for the bearish technical pattern. The closing below this level opens the way for more expected bearish intraday movement, which targets support levels for the general bullish direction at 1.4740. Keep in mind chances of achieving some correctional movementswith pressure from the upcoming positive signs from momentum indicators. Meanwhile, the bearish short term direction will prevail if 1.5015 is not breached.

The trading range for today is among the key support at 1.4740 and the key resistance at 1.5015.

The general trend is to the upside as far as 1.4135 remains intact with targets at 1.6000.

RecommendationBased on the charts and explanations above our opinion is selling the pair from 1.4895 targeting 1.4740 and stop loss above 1.5015, might be appropriate