Morning Report

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After reaching the projected technical target of yesterday's analysis at 128.20; the pair has formed a bearish engulfing candlestick pattern on the daily chart. The bearish signs, which are appearing on Stochastic and AROON indicators, confirm the technical idea of building the CD leg for the [AB=CD] pattern. Thus, the intraday outlook is bearish as far as 132.50 areas remain intact.

Trading range for today is among key support at 126.80 and key resistance now at 132.50.

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

Support128.45127.85127.30126.80126.50
Resistance129.20130.00130.50131.05131.60
RecommendationBased on the charts and explanations above our opinion is, selling the pair from 129.20 targeting 127.40 and stop loss above 130.70 might be appropriate.