Morning report


The pair is moving under the negative pressure of forming harmonic CD leg of a harmonic pattern. We see that the bearish movements are controlled inside descending channel, while SMA 50 acts as a ceiling for the time being. Thus the intraday outlook is to the downside, supported by the negative candlestick formation. A breakout below 132.80-61.8% Fibonacci will accelerate the suggested bearish scenario.

Trading range for today is among key support at 131.00 and key resistance now at 137.40.

The general trend is to the downside as far as 141.44 remains intact with targets at 100.00 followed by 88.97 levels.

RecommendationBased on the charts and explanations above our opinion is, selling the pair from 133.10 targeting 131.40 and stop loss above 134.60 might be appropriate.