The secondary image of the daily time scale shows the long black candlestick pattern formed yesterday, where its closing was achieved comfortably below the combination of SMA 50 and SMA 100. At the same time, we can see how the previous anticipated breakout below 1.6250 zones has sent the pair aggressively downwards within C wave of the suggested Elliott sequence. Now, some kind of retrace to retest the previous broken support areas-turned into resistance- before resuming the projected downside rally, chiefly targeting the psychological level of 1.6000 and a break of which may accelerate the wave.
The trading range for today is among key support at 1.5780 and key resistance at 1.6470.
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 around 1.6225 targeting 1.5980 and stop loss above 1.6420 might be appropriate.|