The royal pair came below SMA 50 successfully, confirming that the CD leg of the proposed harmonic 5-0 pattern is still in progress. The pair is hovering around 50% Fibonacci of the BC leg, preparing to reach the PRZ of the pattern at 76.4% Fibonacci of the aforesaid leg. As we explained before, the alternation principle of the harmonic studies is the essential motive, which made us define 76.4% to be the PRZ -potential reversal zones-of the pattern instead of 50% since C point started at 127% projection of AB instead of 161.8% or 261.8%. We should note that, the allover structure is bullish and we are looking for a reversal point.
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 0.8500 targeting 0.8410 and stop loss above 0.8565 might be appropriate.|