Morning Report


The proposed waves' scenario has not been altered; yet we can see that the pair has settled below the 50% correction at 133.75 which makes us reassess the correctional waves and points to the failure of the proposed waves' scenario for yesterday. We can now see that the pair needs to decline to retest the 132.65 maybe extending towards 131.80; despite the fact that the general expectations support the pair's return to the upside yet today we see that the euro might drop against the Japanese yen.

The trading range for today is among key support at 131.25 and key resistance now at 135.50.

The general trend is to the downside as far as 141.44 remains intact with targets at 100.00 followed by 88.97 levels.

RecommendationBased on the charts and explanations above our opinion is selling the pair from 133.30 targeting 131.80 and stop loss above 134.40 might be appropriate