Morning Report

The top levels around 1.0500 caused volatile negative pressures that forced the dollar versus swissy to achieve a strong descend since yesterday, which points out that the bullish harmonic pattern is currently being formed; whereas the pair presently heads to complete the CD leg for this pattern. Meanwhile, possible reversal levels are around 1.0275 and therefore we expect a bearish intraday that targets mentioned reversal levels. This expected bearish direction requires a breach of 1.0375, with the importance of 1.0425 remaining intact to achieve these expectations. Momentum indicators are showing positive signs that are pushing the pair to attempt to slightly bullishly correct.

The trading range for today is among the key support at 1.0275 and the key resistance at 1.0500.

The general trend is to the downside as far as 1.1225 remains intact with targets at 0.9600.

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RecommendationBased on the charts and explanations above our opinion is selling the pair with the breach of 1.0375 targeting 1.0275 and stop loss above 1.0425, might be appropriate.