Bearishly affected by our previous caught negative divergence, the pair declined below SMA 50 as seen on the provided four hour graph. Actually, this decline was needed to relieve momentum indicators. All what we need now is to a four hour closing above 76.4% retracement of CD leg for the bullish harmonic AB=CD pattern and above SMA 50 once more to make sure that the technical trip of reaching the extended technical targets of the harmonic pattern will continue; noting that yesterday's correction started at our detected technical obstacle of 88.6%. In the interim, areas of 1.6245-1.6250 should protect the pair from more downside actions. To recap, only a break of 1.6365 will assist bulls to dominate the market, while coming below 1.6245 with a four hour closing will threaten the bullish trend.
The trading range for today is among key support at 1.6075 and key resistance at 1.6550.
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, buying the pair above 1.6365 targeting 1.6545 and stop loss below 1.6240 might be appropriate.|