We have been able to catch tow negative signs that may help the royal pair to activate the awaited bearishness of the suggested Elliott count as follows:
- The obvious bearish candlestick structure.
- The negative divergence appearing on Stochastic.
Only a four hour closing below 0.8445 is needed to solidify the negative scenario, where the fifth wave should start. If the current correction intersects with the second wave areas, we will reconsider this suggested Elliott sequence.
The trading range for today is among the key support at 0.8295 and key resistance now at 0.8605.
The general trend over short term basis is to the downside, targeting 0.7780 as far as areas of0.8965remain intact.
Support0.84450.84200.93900.83700.8325Resistance0.84750.85000.85500.85850.8605RecommendationBased on the charts and explanations above our opinion is, selling the pair with a breakout below 0.8445 targeting 0.8325 and stop loss above 0.8520 might be appropriate.