Morning Report

The descending channel continues to control the pair and push it towards pivotal support 1.0615, in an attempt to breach it. Signs of a bearish technical pattern are appearing, where its neckline is at the mentioned support. Therefore, making us expect today an expected bearish intraday direction; targeting mainly 1.0500 - retesting the neckline for the previously breached bullish technical pattern -. This predicted bearish trend, requires the four hour closing to remain below 1.0685 so it may prevail.

The trading range for today is among the key support at 1.0460 and the key resistance at 1.0795.

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 1.0615 targeting 1.0500 and stop loss above 1.0685, might be appropriate.