Morning Report

The pair dropped sharply yesterday to breach the important support level at 1.5575-1.5600. As shown on the chart above; the pair has been trading within a main descending channel where the 50-days SMA (colored in green) formed a ceiling for the latest bullish correction, currently Stochastic crossed over negatively and pointing downwards. Accordingly, we expect thebearishness to continuehowever we may see a slight pullback to test areas around the breached support at 1.5575 which should limit near term upside attempts.

The trading range for today is among key support at 1.5350 and key resistance at 1.5780.

The general trend over short term basis is to thedownsidetargeting1.4225as far as areas of1.6875areas remain intact.

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Harmonic short term outlook

RecommendationBased on the charts and explanations above our opinion is, selling the pair around 1.5575 targeting 1.5270 and stop loss above 1.5780 might be appropriate.