Morning Report

The pair succeeded in reaching the first extended technical of the bullish harmonic formation, seen on the provided four hour graph at 76.4% Fibonacci retracement of CD leg. When we look deeper at the chart, we will find that the closing was achieved above 38.2% retracement of CD leg and that keeps chances for re-attacking 61.8% Fibonacci one more. A break of 61.8% at 79.55 will weaken the resistance of 76.4% and may send the pair higher above the harmonic resistance line, connecting A,C points and their extensions. Anyway, we classify the bearishness from 80.25 to current levels as normal correction for the aggressive upside move occurred yesterday.

The trading range for today is among key support at 76.40 and key resistance now at 81.45.

The general trend over short term basis is to the upside, targeting 87.45 as far as areas of 76.40 remain intact.

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Weekly Report

RecommendationBased on the charts and explanations above our opinion is, buying the pair above 78.35 targeting 80.50 and stop loss below 76.95 might be appropriate.