The negative bias continued to control the royal pair yesterday to close the session below SMA 50, which provides more signs that the downside movement could extend in the coming period, especailly when the pair's movement is limited within the ascending minor channel, which could form a bearish Flag technical pattern. On the other hand, Stochasitc is within oversold areas, which could hinder the breach of the mentioned support of the Flag pattern. In general, we suggest a downside movement today but with two conditions; the first one is a clear breach of the mentioned support level and consolidaiton with 4-hour closing below 0.8295, while the second condition is stability below 0.8385.
The trading range for today is among the major support at 0.8170 and the major resistance at 0.8435.
The short-term trend is to the upside as far as 0.8170 remains intact, targeting 1.0370.
|Recommendation||Based on the charts and explanations above, our opinion is selling the pair with 4-hour closing below 0.8295, targeting 0.8170 and stop loss above 0.8385 might be appropriate|