Morning Report

The pair managed to strongly breach the awaited resistance from the primary targets at the resistance level for the short term descending channel. The negative effect from momentum indicators is forcing the pair to retest thebroken level at 1.3655, followed by a bullish rebound and achieving through it the expected bullish intraday direction; heading towards the first main target 1.3800. In order to for these expectations to prevail it requires the four hour closing to remain above 1.3600.

The trading range for today is among the key support at 1.3485 and the key resistance at 1.3800.

The general trend is to the upside if we do not witness a daily close below 1.3485 with targets at 1.5150.

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RecommendationBased on the charts and explanations above our opinion is buying the pair from 1.3655 targeting 1.3800 and stop loss below 1.3585, might be appropriate.