Morning Report

The pair continues its negative pressure yesterday to stabilize below the upside channel's support level, where the critical horizontal support level is found around 1.6040; thereby, this support represents the suggested neckline for the bearish technical pattern that is still forming. Momentum indicators are showing clear oversold signs, which will cause some upside movement to retest broken support that is turning into resistance around 1.6200 and could assist the pair return within the bullish channel once again. According to the critical nature of the present intraday trend for the pair and the conflict between technical signs, we recommend keeping an eye on intraday trading and specifically around support level 1.6040 and resistance 1.6200; surpassing one of them could lead to the signs for the upcoming intraday direction.

The trading range for today is among the key support at 1.5905 and the key resistance at 1.6345.

The short term trend is to the upside as far as 1.5315 remains intact with targets at 1.7000.

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RecommendationBased on the charts and explanation above our opinion is observing the pair’s movement to insure its upcoming direction.