In addition to the harmonic 5-0 pattern, which we deeply discussed in our weekly report-we recommend reviewing it-, two new bearish signs appeared as follows:
- The bearish candlestick formation of the daily basis-secondary image-.
- The negative divergence of RSI 14.
Thereby, we still believe that the CD leg of the harmonic pattern is in progress, targeting 110.00-109.70 zones but we need to witness a breakout below 112.10 areas first to make sure that the pattern is efficient enough to send the pair downwards. Note that, AROON started to show signs of weakness.
The trading range for today is among key support at 110.50 and key resistance now at 114.75.
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 with a breakout below 112.10 targeting 110.00 and stop loss above 113.80 might be appropriate.|