Classically speaking, we can see potential head and shoulders top pattern with a neckline at the pivotal support of 1.6250, which we explained its importance in our previous reports. We need to witness a decisive breakout below the aforesaid level to make sure that the classical negative pressure will continue over intraday basis. Technical targets reside at the psychological levels of 1.6000; whilst areas between 1.6435 and 1.6470 should be the ceiling. SMA 50 is covering the current bearishness, while MACD and Vortex are definitely negative, solidifying our constructive overview.
The trading range for today is among key support at 1.5935 and key resistance at 1.6550.
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 1.6425 might be appropriate.|