Morning Report

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The pair continues to trade within a narrow range, while a positive technical pattern is starting to take shape as shown on the minor image, the neckline for the pattern is at 120.15, if the pair manages to breach it, the door will be open towards testing the 23.6% Fibonacci level-for the move from 140.00 to 116.80- at 122.25. In general, we count on stability above the resistance of the breached descending channel to expect an intraday bullish move today. However, the move requires two conditions; a clear breach above 120.15 and steady trading above 118.70.

The trading range for the day is expected among the key support at 118.70 and the key resistance at 122.25.

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

Support119.50119.10118.70117.95117.40
Resistance120.30120.95121.35121.75122.25
RecommendationBased on the charts and explanations above we recommend buying the pair with a breach above 120.15 targeting 122.25 and stop loss below 119.50 may be appropriate