The pair closed trading yesterday below support for the previously breached bullish channel and thereby this points to a bearish scenario suggested in yesterday's reports is still active. Pivotal support 1.5530 returned to form the vital support short term direction, where we expect the pair to succeed in breaching it due to the effect of stability below SMA 50. From here, we see that the direction is bearish over an intraday basis that will start when 1.5530 is breached to head towards 1.5360 initially. Keep in mind that the expected bearish trend requires the daily closing to stabilize below 1.5630.
The trading range for today is among the key support at 1.5360 and the key resistance at 1.5710.
The short term trend is to the downside as far as 1.6070 remains intact with targets at 1.3800.
|Recommendation||Based on the charts and explanations above our opinion is selling the pair with the breach of 1.5530 targeting 1.5360 and stop loss above 1.5640, might be appropriate.|