Morning report


The previous discussed potential reversal zoneforthe bullish harmonic AB=CD pattern started to push the royal pair upwards as seen on the provided daily chart. Stochastic has crossed over positively this morning while the pair is attacking the key resistance level of 0.9000. We still believe that a potential harmonic CD leg is under preparation on Stochastic also. Hence we keep the potential upside expectation over intraday basis according to our suggested count as far as 0.8820 areas remains intact.

The trading range is among the key support at 0.8790 and key resistance now at 0.9205.

The general trend is to the upside as far as 0.8020 area remains intact with targets at 1.0000 followed by 1.0400 levels.

RecommendationBased on the charts and explanations above our opinion is, buying the pair from 0.8985 targeting 0.9100 and stop loss below 0.8905 might be appropriate.