Morning Report

The euro versus dollar was able to achieve the daily descend since yesterday to touch pivotal support at 1.4050, forming the neckline for the predicted bearish technical pattern that is still forming. Trades are organizing within the descending channel that point to more bearish short term trends, but present pivotal support will make us expect a bullish correctional direction due to oversold signs that are appearing on momentum indicators. Meanwhile, the pair could touch 1.4300 before resuming the bearish short term direction; keeping in mind that the breach of 1.4050 could make the bullish correctional expectations to fail and speed up the descending process.

The trading range for today is among the key support at 1.3870 and the key resistance at 1.4310.

The general trend is to the upside as far as 1.3480 remains intact with targets at 1.6000.

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RecommendationBased on the charts and explanations above our opinion is buying the pair from 1.4055 targeting 1.4145 and stop loss below 1.3975, might be appropriate.