Morning report

After reaching the first expected target of the cup with handle pattern around 0.9070, the pair has corrected mildly towards the areas of 0.9030 as we discussed before. Now the resumption of the previous explained bullish scenario of the extensions of the harmonic pattern, targeting 0.9260 areas over the short term basis is anticipated to start. Hence we keep our outlook to the upside on the intraday basis.

Trading range is among the key support at 0.8890 and key resistance now at 0.9205.

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 0.8970 might be appropriate.