Morning Report

The pair attacked support for the ascending channel strongly, while achieving the last four-hour candlestick below 1.0770 by a slight difference; therefore pointing to chances of a bearish intraday direction. A bearish technical pattern formation seems to be appearing, where its neckline is at 1.0715; thus we can picture the scenario of an expected bearish intraday trend that requires first insuring the breach of 1.0716 followed by a way towards 1.0605 initially. The four hour closing must remain above the MA 50 - currently at 1.0780 - weakening chances of achieving these expectations.

The trading range for today is among the key support at 1.0605 and the key resistance at 1.0900.

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 1.0715 targeting 1.0605 and stop loss above 1.0785, might be appropriate.