Morning Report

Despite that the general trend is still valid to the upside; we can see that the pair is now trading below the 20 Days MA which accompanied 23.6% correction for the third wave which makes us expect that the pair will decline towards 38.2% and maybe 50% correction at 0.9045 and 0.8940 respectively. The expected downside move is merely correctional to construct the fourth wave before resuming to the upside to initiate the fifth wave. The downside move will prevail as far as trading is below 0.9185 over intraday basis.

The trading range is among the key support at 0.8940 and key resistance now at 0.9350.

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 selling the pair from 0.9180 targeting 0.9045 and stop loss above 0.9245 might be appropriate