Despite of the sharp declined, the four hour candlestick closing yesterday for the pair was above 1.6070 and MA 50; thus, postponing the downside intraday trend continuing after the breach of the upside channel' support level in the image above. In addition, stochastic is giving off bullish signs that may contribute in the bullish direction. Henceforth, we expect the intraday direction to depend on 1.6160 - retesting the breached upside channel's support level - and 1.6070 - the MA 50touching 23.6% Fibonacci correction -. In overall, we recommend keeping an eye on sensitive levels and follow up on the technical analysis to point out when we achieve an initial assurance regarding the upcoming direction.
The trading range for today is among the key support at 1.5965 and the key resistance at 1.6345.
The short term trend is to the upside as far as 1.5315 remains intact with targets at 1.7000.
|Recommendation||Based on the charts and explanations above our opinion is selling the pair with an hourly closing below 1.6070 targeting 1.5905 and stop loss above 1.6160, might be appropriate.|