Morning Report

The pair declined yesterday affected by the negativity on Stochastic that added more strength to the minor descending channel's resistance shown above. We have conflicting technical signals, where we see signs of a bearish pattern with the neckline at 1.6300 supported by trading below MA 50, which might drive the pair towards 1.6150; meanwhile, Stochastic is offering positive signals that might support the pair in returning to the general upside move. Therefore, we remain neutral for today and observe trading around 1.6300 and 1.6475.

The trading range for today is among the major support at 1.6150 and the major resistance at 1.6550.

The short-term trend is to the upside with steady daily closing above 1.5315 with targets at 1.7000.

RecommendationBased on the charts and explanations above we recommend observing trading today awaiting more confirmations