Morning Report

Thebreakout below1.4050 caused aggressive downside actions followedby the bullish rebound thatis appearing on momentum indicators, alongside it returning to stabilize above 161.8% correction level at 1.3990; therefore causing some bullish correction. The short term direction remains bearish, but for today we expect some bullish correction before continuing the original bearish direction. It is vital that 1.3925 remains intact to maintain chances of achieving the bullish correction.

The trading range for today is among the key support at 1.3800 and the key resistance at 1.4305.

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 1.3990 targeting 1.4150 and stop loss below 1.3900, might be appropriate.