Morning Report

The pair stabilized above yesterday's breach resistance at 1.3435, where signs of a bullish technical pattern are appearing as its neckline is at 1.3560. This pattern in addition to the ongoing fluctuation around MA 100 are factors that encourage us to expect a bullish direction overintraday basisthat will start with the breach of the mentioned neckline, followed by an attack on resistance for the descending short term channel at 1.3615 then head towards 1.3640 - 1.3670. Chances of achieving this scenario will remain intact if we do not witness a clear breach of 1.3435.

The trading range for today is among the key support at 1.3380 and the key resistance at 1.3670.

The short term trend is to the downside as far as 1.4410 remains intact with targets at 1.2450.

Weekly Report Previous Report

RecommendationBased on the charts and explanations above our opinion is buying the pair with the breach of 1.3560 targeting 1.3670 and stop loss below 1.3490, might be appropriate.