Morning Report

The royal pair has collapsed downwards, influenced by the bearish harmonic pattern on the four-hour chart which formed a potential reversal area between 0.9360 and 0.9435. Now, further bearishness is to come as the negative daily closing has resulted in a shooting star pattern as seen on the secondary image, supporting the negative harmonic intraday outlook. Stochastic has already overlapped which adds more confirmation to the overview.

The trading range is among the key support at 0.9130 and key resistance now at 0.9500.

The general trend is to the upside as far as 0.8020 area remains intact with targets at 1.0000 followed by 1.0400 levels.

RecommendationBased on the charts and explanations above our opinion is, selling the pair from 0.9325 targeting 0.9230 and stop loss above 0.9405 might be appropriate