The pair succeeded in surpassing 1.6455, where the technical obstacle of 88.6% Fibonacci retracement of CD leg for the bullish harmonic pattern exists. This breakout has taken the pair towards the full correctional levels of the aforesaid leg; accordingly, 127.2% Fibonacci projection should be put under our technical microscope to be the next target of the journey of achieving the extended technical targets of the harmonic pattern. But, we have two technical problems that prevent us from suggesting bullish trend resumption as follows:
The last three four hour candlesticks closed comfortably below 100% of CD leg, indicating that the upside momentum is decreasing.
There is a probability of forming huge negative divergence on RSI 14.
As a consequence, we should be patient until we catch an actionable setup to define the next move; noting that wewill belongif it achieves a four hour closing above 100% of CD leg, seen on the four hour graph.
The trading range for today is among key support at 1.6225 and key resistance at 1.6745.
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, staying aside until an actionable setup presents itself to pinpoint the next move.|