Morning Report

Our yesterday's captured positive divergence of RSI 14 succeeded in sending the pair towards SMA 50 as we anticipated and we see how SMA 50 forced it to move downwards once more. Henceforth, the negative effect of the continuation rising wedge pattern is still in progress and its extended targets at 127.2% and 161.8% of the upside rally from 105.40 to 112.15 are under our microscope. A break of 107.80 will bring panic sell-off actions.

The trading range for today is among key support at 105.40 and key resistance now at 111.05.

The general trend over short term basis is to the downside, targeting 97.90 as far as areas of 132.50 remain intact.

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Weekly Report

RecommendationBased on the charts and explanations above our opinion is, selling the pair around 108.50 targeting 105.90 and stop loss above 110.25 might be appropriate.