Morning Report

In accordance with yesterday's suggested bullishness, the pair has inclined touching 38.2% Fibonacci retracement of the entire downside rally from 80.20 to 75.90 zones at 77.60 as seen on the provided four hour graph. We expect some kind of mild bounce due to facing the aforementioned important Fibonacci level as Stochastic started to show overbought sign. But, stabilizing above SMA 20 and above 23.6% retracement of our caught Elliott sequence encourages us to keep our bullish predications intact over intraday basis; noting that a break of 77.60 will send the pair violently upwards without correction. Ultimately, the potential classical head and shoulders bottom pattern solidifies our constructive outlook.

The trading range for today is among key support at 75.80 and key resistance now at 79.55.

The general trend over short term basis is to the upsidetargeting 87.45 as far as areas of 75.20 remain intact.

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RecommendationBased on the charts and explanations above our opinion is, buying the pair above 77.20 targeting 79.55 and stop loss below 75.80 might be appropriate.