Morning Report

The pair continues trading near the retest level 1.3860, with signs of a bearish technical pattern appearing - its neckline meets with 1.3860 - causing more negative pressure on the pair. The MA 50 continues offering support for the pair and maintain chances of continuing moving to the upside suggesting our previous reports, but it is vital to remain cautious and observe the pair around the mentioned neckline, where breaching it will lead to reaching the support level for the upside channel faster around 1.3780.

The trading range for today is among the key support at 1.3780 and the key resistance at 1.4000.

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 explanation above our opinion is observing the pair’s movement to insure its upcoming direction.