Morning Report

After the breached downside channel resistance's retest level maintained its stance in front of the pair and its several attempts to move downwards, the pair pushed to presently touch pivotal resistance 1.3715. Hovering above the MA 50 is s positive sign that previously suggested upside will continue; therefore, we expect a bullish intraday direction that will initially start when the previously highlighted resistance level is breached, then head towards 1.3860 as a main target. It is vital that stability is above 1.3610 in order for our expectations to prevail.

The trading range for today is among the key support at 1.3540 and the key resistance at 1.3890.

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

RecommendationBased on the charts and explanations above our opinion is buying the pair with the four hour closing above 1.3715 targeting 1.3860 and stop loss below 1.3610, might be appropriate.