Yesterday's violent decline has proved the strength of the solid resistance around 1.3385 as the pair was taken easily towards 38.2% Fibonacci of the entire downside rally from 1.4245 to 1.2625 as seen on the provided daily chart. Stability below 38.2% level -turned into resistance- in addition to the negativity appearing on the candlesticks structure and the bearishness on Stochastic are reasons that argue us to suggest further losses over intraday basis. Ultimately, a break below SMA 100 will accelerate and confirm the bearish scenario.
The trading range for today is among key support at 1.3005 and key resistance at 1.3415.
The general trend over short term basis is to the downside, targeting 1.1865 as far as areas of 1.3550 remain intact.
|Recommendation||Based on the charts and explanations above our opinion is, selling the pair around 1.3220 targeting 1.3005 and stop loss above 1.3380 might be appropriate.|