Morning Report

Due to thebreakout below areas of1.4930 mentioned yesterday, the negative effect caused acompletion of the bearish technical pattern shown in the side image. The pair is currently moving within the fifth wave and the higher ranked impulsive wave - we remind that this scenario is one of the scenario's that provides the least targets and we will look into it again if bearish targets are needed -. The stochastic despite of it entering oversold areas is giving off a need for more bearish movement, which could be opened alongside the RSI that points to the possibility of more bearish movement. These technical facts are making us expect more bearish movement which could be possible for the pair through trading today.

The trading range for today is among the key support at 1.4605 and the key resistance at 1.5060.

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 1.4930 targeting 1.4605 and stop the four hour loss above 1.5030, might be appropriate.