Resuming our classical series for the pair, we can notice how it is well resisted around 1.6175 zones where the four-hour candlesticks have formed long upper wicks. Additionally, the descending channel from 1.6745 zones is still dominating the movements. It is worth noting that the over all price actions were trapped within tight range since the opening of this week, reviving that a price explosion is under preparation. Anyway, the bearishness is still favored over intraday basis as far as we don't witness a stable move above 1.6250-1.6260 zones; whist a break of 1.6125-1.6095 will accelerate the awaited bearish wave, supported by the classical head and shoulders top pattern appearing on the bigger time frames as we discussed in the previous reports and we recommend reviewing the weekly report for more details about the pattern.
The trading range for today is among key support at 1.5935 and key resistance at 1.6380.
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 with a breakout below 1.6125 targeting 1.5935 and stop loss above 1.6265 might be appropriate.|