Morning Report

The pair rushed to the upside steeply yesterday to continue the upside correction reaching 61.8% while trading above the support level for the descending channel. Momentum indicators are providing negative signals supporting the strength of the correction level and therefore we expect a downside intraday move today targeting initially 1.5975 and then 1.5920 and require 1.6155 to remain intact with four hour closing.

The trading range for today is among the key support at 1.5830 and the key resistance at 1.6255.

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 1.6090 to 1.5975 and stop loss above 1.6155 might be appropriate