The pair is still fluctuating below the neckline areas of our previous discussed classical head and shoulders top pattern as seen on the provided daily graph. We classify this fluctuation as a gathering momentum process in order to assist it to breach through the initial support areas around 1.6045, followed by the psychological level of 1.6000. SMA 50 has been retested yesterday and it succeeded in sending the pair to the downside. In result, we keep our bearish anticipations over intraday basis, supported by the negativity on Stochastic indicator. On the upside, only a break of 1.6250-1.6260 with a daily closing will delay the bearish classical scenario.
The trading range for today is among key support at 1.5880 and key resistance at 1.6310.
The general trend over short term basis is to the downsidetargeting 1.4225 as far as areas of 1.6875 areas remain intact.
|Recommendation||Based on the charts and explanations above our opinion is, selling the pair below 1.6095 targeting 1.5880 and stop loss above 1.6260 might be appropriate.|