Morning Report

After the pair's trading stabilized below support for thebroken ascending channel yesterday, signs of a bearish technical pattern where its neckline is at 1.1505 have started to appear. Accompanying this pattern is negative signs that are appearingonStochastic; these factors encourage us to expect a bearish trend for today that will start with a clear breach of the mentioned neckline and head towards 1.1400 initially. The breach of 1.1620 is the main factors for making the suggested scenario for the bearish pattern fail.

The trading range for today is among the key support at 1.1400 and the key resistance at 1.1650.

The short term trend is to the upside as far as 1.0200 remains intact with targets at 1.2000.

Previous Report Weekly ReportSupport1.15051.14601.14301.13851.1300Resistance1.15401.15801.16201.16851.1735RecommendationBased on the charts and explanations above our opinion is selling the pair with the breach of 1.1505 targeting 1.1400 and stop loss above 1.1580, might be appropriate.