Morning Report

width=640

The pair dropped sharply to complete a bearish rising wedge formation shown on image above. The pattern suggests further downside pressure , where trading and daily closing back below the resistance of the main descending channel supports the downside bias. Expected targets start at 119.30 and 117.95 and require stability below 121.05

The trading range for the day is expected among the key support at 117.95 and the key resistance at 122.25.

The short term trend is to the downside as far as 150.00 remains intact with targets at 112.00.

Support120.00119.30119.00117.95117.40
Resistance120.60121.05121.75122.25122.60
RecommendationBased on the charts and explanations above we recommend buying the pair around 120.60 targeting 119.30 and 117.95 and stop loss with four-hour closing above 121.05 may be appropriate.