Morning Report

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As we discussed previously during this week, the royal pair is slowly forming the head and shoulders bottom pattern as seen on the provided daily chart, while being protected above the pivotal support areas of 0.8720-0.8700. Actually, a breakout above 0.8790 -0.8820 zones is needed to ease the way towards the technical objective of the classical pattern. Thereby, potential bullish actions could be witnessed over intraday basis.

The trading range is among the key support at 0.8610 and key resistance now at 0.8935.

The general trend is to the upside as far as 0.8020 area remains intact with targets at 1.0000 followed by 1.0400 levels.

Weekly ReportPrevious Report

Support0.87600.87200.87000.86850.8655
Resistance0.88000.88200.88650.89050.8935
RecommendationBased on the charts and explanations above our opinion is, buying the pair with a breakout above 0.8790 targeting 0.8905 and stop loss below 0.8700 might be appropriate.