Morning Report

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The previous explained bullishness over the past 3 days has been limited around 131.60 zones, where the pair slipped aggressively, offering a potential harmonic AB=CD pattern. We believe thatit ispresently forming the CD leg of the above mentioned pattern, targeting 128.15. Therefore, the intraday outlook is bearish, supported by the negative candlesticks formation alongside negative signs appearing on momentum and trend indicators.

Trading range for today is among key support at 126.80 and key resistance now at 132.50.

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

Support129.40128.90128.45127.85127.35
Resistance130.00130.50131.05131.60132.50
RecommendationBased on the charts and explanations above our opinion is, selling the pair from 130.00 targeting 128.20 and stop loss above 131.60 might be appropriate.