Four-hour closing below 111.60 failed the expected upside move and the pair settled for 76.4% correction of the bullish Bat Pattern. Currently, the pair entered a downside correction and we can see a harmonic formation which might extend the bearishness over the coming period as far, as the pair does not return to consolidate above 112.85. Stochastic is heavily oversold and that conflicts the breach seen yesterday and accordingly we remain neutral today awaiting confirmations for the breach and the new harmonic formation, or if the pair will return to the upside.
The trading range for today is among key support at 108.75 and key resistance now at 113.85.
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 we remain neutral and observe the pair for more confirmations as mentioned above|