The cable head to the downside due to pressure from the resistance level for the ascending channel, shown in the image above. This bearish trend is required to correct the sharp bullish wave from yesterday, at the same time retest the breached main resistance for previous bearish trend at 1.6590. The side image shows the real driver behind this downside movement - double top pattern -. The stochastic is nearing oversold areas, thus supporting trading rebounding to the upside. Hence, we expect a bullish intraday direction for today that targets 1.6900 and requires trading to remain above 1.6590 to prevail.
The trading range for today is among the key support at 1.6340 and the key resistance at 1.6900.
The general trend is to the upside as far as 1.4840 remains intact with targets at 1.7100.
|Recommendation||Based on the charts and explanations above our opinion is buying the pair at 1.6590 and targeting 1.6700 and stop loss below 1.6515, might be appropriate|