Negative trading as expected and the 20 & 50 SMA proved that this downside move is due to the harmonic bearish pattern above. Therefore, we expect further downside movement for the coming period towards 50% correction and then 61.8% of CD leg at 0.8500 and 0.8460. Our expectations require stability below 0.8635 and preferably below 0.8590 to be confirmed. We might witness high volatility due to the overbought pressures on Stochastic.
The trading range for today is among the key support at 0.8365 and key resistance now at 0.8700.
The general trend over short term basis is to the downside targeting 0.7780 as far as areas of0.8965remain intact.
|Recommendation||Based on the charts and explanations above, our opinion is selling the pair around 0.8540 targeting 0.8460 and stop loss with four-hour closing above 0.8635 might be appropriate today|