Morning report

The pair is building the right shoulder of a minor inverted head and shoulders pattern that may be able to confirm the harmonic structure which still has targets to be reached around 132.50 and may extend further towards 134.15 areas. The ideal technical target of the aforesaid classical pattern, which is in progress, also resides at 134.15. Hence we keep our overview to the upside on the intraday basis, supported by the positive divergence appearing on the CCI indicator. A breakout above 130.80 will confirm the expected direction.

Trading range for today is among key support at 126.70 and key resistance now at 134.15.

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 130.20 targeting 132.20 and stop loss below 128.60 might be appropriate.