Weekly Report


Despite that the bearish harmonic pattern is not ideal, it remains valid, and the SMA 20 & 50 are acting as ceilings for the pair's trading alongside the negativity on Stochastic. Therefore, we believe that the pair might attempt again to stabilize below 76.4% correction of CD to rush towards 88.6% at 0.8370 then far towards trough C around 0.8330. Those expectations require stability below 0.8530-05 and preferably below 0.8475. Trading below the harmonic support shown above adds further confirmations for the bearishness.

The trading range for this week is among the key support at 0.8295 and key resistance now at 0.8590.

The general trend over short term basis is to the downside targeting 0.7780 as far as areas of0.8965remain intact.

RecommendationBased on the charts and explanations above, our opinion is selling the pair around 0.8440 targeting 0.8330 and stop loss above 0.8505 might be appropriate