Morning Report

The cable touched the support level for the minor bearish channel that represents the bearish short term wave. Last week's close was below 1.6530, where it insured the bearish short term direction. Meanwhile, we can expect some fluctuation within the minor bearish channel and then reverse to achieve a bearish trend over an intraday basis; where its targets start at 1.6405 and require the four hour close to remain below 1.6580.

The trading range for today is among the key support at 1.6350 and the key resistance at 1.6735.

The general trend is to the upside as far as 1.4840 remains intact with targets at 1.7200.

RecommendationBased on the charts and explanations above our opinion is selling the pair from 1.6580 targeting 1.6405 and stop loss above 1.6665, might be appropriate.