Morning Report

The pair managed to achieve a clear breach for the bearish technical targets shown in our reports yesterday to stop at the 76.4% Fibonacci correction. The pair moved to the upside as a bullish correction due to effects from momentum indicators; therefore, we expect to touch broken support 1.3575 followed by a bearish reversal that will achieve through it the pair a possible bearish intraday direction. The awaited first target is at 1.3485 to determine the medium term direction. The breach of 1.3575 will weaken chances for a bearish trend for today.

The trading range for today is among the key support at 1.3400 and the key resistance at 1.3690.

The general trend is to the upside if we do not witness a daily close below 1.3485 with targets at 1.6000.

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RecommendationBased on the charts and explanations above our opinion is selling the pair from 1.3575 targeting 1.3485 and stop loss above 1.3650, might be appropriate.