Morning Report

The pair rushed strongly to the upside yesterday reaching the major resistance level for the minor ascending channel which is constructing the short term upside wave for the pair at 136.00. Momentum indicators are overbought which makes us expect a downside correction targeting 134.45 -23.6% correction- before resuming the upside wave which targets 138.90. The short term bullish trend remains valid as far as 133.55 is intact.

The trading range for today is among key support at 130.50 and key resistance now at 137.40.

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 with the breach of 135.45 targeting 134.45 and stop loss above 136.20 might be appropriate