Morning Report

The pair closed tradingaround 1.3265 that is awaited to be breached, where new support that represents previouslybroken resistance for the main descending channel (shown in the image above). We see that this insures yesterday's expectations and therefore we think that the expected direction today is bullish; requiring a clear breach of 1.3265 to head towards 1.3395 as a first target. It is vital that 1.3175 remain intact to achieve these expectations.

The trading range for today is among the key support at 1.3115 and the key resistance at 1.3395.

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

Previous Report Weekly ReportSupport1.31751.31151.30901.30351.2960Resistance1.32651.33401.33801.34451.3495RecommendationBased on the charts and explanations above our opinion is buying the pair with the breach of 1.3265 targeting 1.3395 and stop loss below 1.3175, might be appropriate.