Morning report

The European currency is still forming a continuation [Flag] pattern as seen on our provided four-hour chart, preparing for a breakout above61.8% Fibonacci level as a normal technical effect for the minor detected harmonic formation, targeting 132.50 zones and may extend further towards the key resistance level of 134.15. Hence we keep our intraday outlook to the upside over the intraday basis.

Trading range for today is among key support at 127.60 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, buying the pair from 131.00 targeting 132.80 and stop loss below 129.60 might be appropriate.