Morning report

Finally, the technical target of the short term basis has been reached at today's recorded low of 129.80. The pair has declined aggressively, activating the expected panic sell-off actions which occurred after the break of the key support level of 132.50. These actions are to be seen as the previous discussed internal third wave of Elliott studies to the downside, targeting 125.60 zones. The negative structure along with the negative signs obtained from Ribbons lines [EMA 10-80] support the negative scenario.

Trading range for today is among key support at 133.60 and key resistance now at 126.50.

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

RecommendationBased on the charts and explanations above our opinion is, selling the pair from 130.70 targeting 128.60 and stop loss above 132.50 might be appropriate.