In accordance with our weekly scenario, the royal pair declined violently as seen on the provided four hour graph. This downside move added more confirmation that the harmonic 5-0 pattern is still in progress, where the last leg-CD leg- continued taking it downwards. As we discussed earlier, the alternation principle of the harmonic studies offers the probability of visiting 76.4% of BC leg at 0.8410 since the C point signaled a reversal at 127.2% Fibonacci projection level instead of the extended Fibonacci projection levels. RSI and AROON are still negative and thereby, we hold onto our bearish predications over intraday basis.
The trading range for today is among the key support at 0.8380 and key resistance now at 0.8585.
The general trend over short term basis is to the downside, targeting 0.7780 as far as areas of 0.8965 remain intact.
|Recommendation||Based on the charts and explanations above our opinion is, selling the pair around 0.8515 targeting 0.8410 and stop loss above 0.8590 might be appropriate.|