Morning Report

Five waves-IM structure- have carried the royal pair from 0.9145 levels to the recorded low of 0.8277 as seen on the provided daily chart. The reversal candlestick pattern hammer, which was formed yesterday, indicates that the pair is in a definite need for an upside correction; supported by indicators. Therefore possible upside correction is underway. Note that the allover structure is still bearish and the awaited bullishness is just a correction.

The trading range for today is among the key support at 0.8245 and key resistance now at 0.8500.

The general trend over short term basis is to the downside, targeting 0.7780 as far as areas of 0.8965 remain intact.

Weekly ReportPrevious Report

Support0.83650.83050.82750.82450.8210Resistance0.83800.84000.84200.84800.8500RecommendationBased on the charts and explanations above our opinion is, buying the pair from 0.8365 targeting 0.8480 and stop loss below 0.8275 might be appropriate.