Yesterday's attempt to re-attack 88.6% Fibonacci retracement of CD leg for the bullish harmonic AB=CD pattern has failed as we can see how the pair moved sharply downwards once again attacking 76.4% aggressively. A drop below our previous indicated support of 1.6250 is needed to make sure that it will not reach more extended targets above 88.6% of CD leg. At the same time, RSI 14 started to show negative tendency that may assist the pair in breaching the aforesaid solid support. Ultimately, the eventual downside targets will be pointing at 1.5960; noting that, areas of 88.6% retracement of CD leg should act as a ceiling to protect any bearish movements.
The trading range for today is among key support at 1.6075 and key resistance at 1.6630.
The general trend over short term basis is to the downside, targeting 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 1.6250 targeting 1.6025 and stop loss above 1.6420 might be appropriate.|