We are still following our previous suggested Elliott count, where 76.4% Fibonacci retracement for the entire downside rally from 1.6475 to 1.6108 was one of our proposals for completing the forth wave which took the TZ shape. Thus, the fifth wave may be in progress, andonce the pair achieves stability along with hourly closing below 61.8% of the aforesaid rally , it will be an indication that Cable was capped outaround 76.4% level. Moreover, the pair started to hit SMA 20 -colored in red- adding further confirmation that it has lost its upside correctional steam. On the other side, a break of 1.6475will damage this outlook completely and in that case,we will be forced to reconsider this Elliott sequence.
The trading range for today is among key support at 1.6070 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 1.6335 targeting 1.6125 and stop loss above 1.6500 might be appropriate.|