Our expectations were fulfilled perfectly during the past two weeks, we leave the harmonic technical pattern after its effect was done around 161.8% Fibonacci correction of the CD leg (more detailscan be found in our previous and weekly reports). Today, classically speaking, we can recognize a possible head and shoulders pattern, where the neckline of this pattern is at 38.2% Fibonacci correction of the bullish wave that started from 0.9405 and ended at 1.0009. 4-hour closing below 0.9780 should activate negative expectations, while stability below 0.9865 should keep the negative expectations valid.
The trading range for today is among the major support at 0.9635 and the major resistance at 1.0010.
The short-term trend is to the downside as far as 1.0665 remains intact targeting 0.9000.
|Recommendation||Based on the charts and explanations above our opinion is selling the pair around 0.9830 and take profit in stages at (0.9710, 0.9635) and stop loss with 4-hor closing above 0.1.9865 might be appropriate|