Morning Report

The pair continued fluctuating around support for the current descending channel at 1.0540 in an attempt to breach and head towards vital support 1.0480. Stabilizing below the previously breached neckline at 1.0645, as well as below MA 50 will make us expect a bearish direction over the short term trend; requiring first a clear breachfor thesupport level of 1.0480 that paves the way towards 1.0425 then 1.0310. The expected descend requires 1.0645 to remain intact to maintain chances of achieving it.

The trading range for today is among the key support at 1.0425 and the key resistance at 1.0645.

The general trend is to the downside as far as 1.1095 remains intact with targets at 0.9910.

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RecommendationBased on the charts and explanations above our opinion is selling the pair with the breach of 1.0540 targeting 1.0425 and stop loss above 1.0645, might be appropriate.