Morning Report

width=640

The four-hour chart shows how the pair settled above a minor ascending trend-line that started carrying price after the latest test of the support of the descending channel shown on image. This ascending support may lead to further bullishness targeting a test of the yellow shaded area. This area is the main previously breached support -which we discussed in our weekly report- in addition to the resistance of the channel. Accordingly, we should monitor trading at that area to confirm the next possible move over the short term. Breaching 0.8255 will weaken the awaited bullish move and may lead to a test of 0.8170.

The trading range for the day is expected among the key support at 0.8170 and the key resistance at 0.8440.

The short term trend is to the upside as far as 0.8165 remains intact with targets at 1.0370.

Support0.82560.82000.81700.81000.8065
Resistance0.82950.83700.84000.84400.8480
RecommendationBased on the charts and explanations above we recommend buying the pair around 0.8260 targeting 0.8400 and stop loss with four-hour closing below 0.8255 may be appropriate.