The case becomes very critical since the bearish channel and SMA 50 are forcing the pair to move downwards. As far as trading remains below 0.8440 and 0.8460, the bearishness will continue. At the same time, SMA 20 and 76.4% Fibonacci of CD leg of the harmonic structure at 0.8410 prevents the pair from achieving the awaited downside wave, whilst Stochastic is positive and RSI is neutral. Anyway, as far as the pair is stable below 0.8460, the extended targets of the harmonic pattern might be visited and stability above 0.8460 will bring more upside movements towards 0.8505-0.8540.
The trading range for today is among the key support at 0.8210 and key resistance now at 0.8505.
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 0.8420 targeting 0.8245 and stop loss with a four closing above 0.8460 might be appropriate.|