Morning Report

The pair returned to fluctuate around the MA 50 due to positive effect of stochastic that is losing bullish momentum and inching closer to overbought areas; thus, making us hold onto our bearish intraday expectations and specifically after the last touch of the symmetrical resistances' level, where the pair's trading is wedged within it since mid-September 2010. The breach of 81.65 will activate the bearish trend strongly and push the pair towards 80.35 initially, while keeping in mind the importance of a daily closing stabilizing below 83.10 to insure resuming the suggested scenario.

The trading range for today is among the key support at 80.35 and the key resistance at 83.10.

The short term trend is to the downside as far as 89.35 remains intact with targets at 77.70.

RecommendationBased on the charts and explanations above our opinion is selling the pair with the breach of 81.65 targeting 80.35 and stop loss above 82.25, might be appropriate.