Morning Report

The pair touched 1.2240 - 38.2% Fibonacci correctional level- ,moving according to the suggested midday scenario yesterdayonits way to complete forming the bearish technical pattern shown above. We currently await some upside movement; targeting 1.2330 - 23.6% Fibonacci that turned into resistance -. This ascend it due to the positivity of momentum indicators and when it had reached this level, where we should observe the pair more precisely. The bearish reversal has completed the suggested head and shoulders pattern flawlessly to head towards the downside, where breaching it will make the breached bullish trend's previous pace.

The trading range for today is among the key support at 1.2170 and the key resistance at 1.2450.

The short term trend is to the downside as far as 1.3770 remains intact with targets at 1.1700.

Previous Report Weekly ReportSupport1.22401.22151.21701.20851.2040Resistance1.23301.24001.24701.25001.2565RecommendationBased on the charts and explanations above our opinion is buying the pair cautiously around 1.2240 targeting 1.2330 and stop loss below 1.2170, might be appropriate.