Morning Report


The pair continued to trade positively yesterday to touch the resistance of a minor ascending channel that may be a continuation flag pattern, the pattern support the expected downside move. The 50-EMA is also supporting the downside move in addition to negativity on Stochastic. Accordingly, we anticipate a breach below the support of this channel at 101.30 to activate the bearish scenario. Breaching 102.45 may invalidate this scenario.

The trading range for today is expected among the key support at 100.00 and the key resistance at 103.00.

The short term trend is to the downside as far as 150.00 remains intact with targets at 112.00.

RecommendationBased on the charts and explanations above we recommend selling the pair with a breach below 101.30 targeting 100.00 ,stop loss with four-hour closing above 101.70 may be appropriate