Morning ReportIn addition to all what we explained about the bearish classical effect of the rising wedge pattern during the previous period-click on the weekly report-, we can signs of drawing a potential bearish harmonic butterfly pattern over four hour interval. Thus, we look at yesterday's incline as a correction for the continuous descending movements from 112.15 zones to 107.60 areas. In the interim, RSI entered overbought areas, encouraging us to predicate possible bearishness over intraday basis.
The trading range for today is among key support at 107.30 and key resistance now at 111.60.
The general trend over short term basis is to the downside, targeting 97.90 as far as areas of 132.50 remain intact.
|Recommendation||Based on the charts and explanations above our opinion is, selling the pair around 109.80 targeting 107.85 and stop loss above 111.10 might be appropriate.|