Morning report

After reaching the first expected target of the cup with handle pattern around 0.9070, the pair is to correct mildly towards the areas of 0.9030, where it could gather the momentum it needs to resume the previous explained bullish scenario of the extensions of the harmonic pattern, targeting 0.9260 areas over the short term basis. Friday's white marubozo candlestick pattern confirms the positive potential as seen on the secondary image.

Trading range is among the key support at 0.8905 and key resistance now at 0.9180.

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.

RecommendationBased on the charts and explanations above our opinion is, buying the pair from 0.9040 targeting 0.9130 and stop loss below 0.8975 might be appropriate.