Morning Report

The downtrend continued to take the pair towards the 100% expansion as seen in the above image yet at the same time we see the pair trading below the key support for the downside channel affected by the bearishness yet the 1.6205 level was able to limit further declines on the intraday basis. Momentum indicators show the pair being oversold which may open the way for an upside correction before reversing back to the downside on the short term to breach the above mentioned level.

The trading range for today is among the key support at 1.5925 and the key resistance at 1.6625

The general trend is to the upside as far as 1.4840 remains intact with targets at 1.7100

RecommendationBased on the charts and explanations above, our opinion is selling the pair with the breach of 1.6205 to 1.6050 and stop loss above 1.6340 might be appropriate.