Morning Report

According to the suggested scenario yesterday, the pairdeclined sharply and is now showing new classical technical signs that insure to us that the pair could decline further. Clear attempts to breach main support for the minor bullish direction is evident, where we see a bearish technical pattern formation that insures that the pair may witness more downside movement. Stochastic stabilizing below 50 as well as the negative signs appearing on the stochastic all support expectations for today. It is vital that the breach of 1.4930 and building base below it might accelerate the bearishness.

The trading range for today is among the key support at 1.4700 and the key resistance at 1.5185.

The short term trend is to the upside as far as 1.4850 remains intact with targets at 1.7000.

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RecommendationBased on the charts and explanations above our opinion is selling the pair from 1.5000 targeting 1.4700 and stop the four hour loss above 1.5100, might be appropriate.