Morning Report

According to yesterday report, the pair moved to the downside due to the effect of the bearish technical pattern as we continue studying the possible harmonic formation that has taken the shape of the bullish AB=CD pattern. This formation suggests that we may witness a bullish correction which will cause a retest of levels around 38.2% for the CD 1.3180 pattern, where breaching this level could be a reason behind an extended correction reaching 61.8% for the CD leg around 1.3245. This harmonic formation will prevail as long as trading stabilizes above 1.3070.

The trading range for today is among the key support at 1.2965 and the key resistance at 1.3255

The short term trend is to the upside as far as 1.2795 remains intact with targets at 1.5135.

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Weekly Report

RecommendationBased on the charts and explanations above our opinion is buying the pair around 1.3120 targeting 1.3245 and stop loss below 1.3000, might be appropriate.