Our yesterday's technical decision to stay aside was correct since the pair couldn't take the full correctional level or rather 100% Fibonacci of CD leg for the bullish harmonic AB=CD pattern to achieve more extended upside targets. Now, we can notice the bearish tendency along with the huge negative divergence appearing on RSI 14 that we hinted at it in the previous report. Moreover, the classical probability of forming a broadening top pattern-megaphone pattern- suggesting that the bearishness may dominate the movements over intraday basis. Breaching through 1.6420; preferably below 1.6365 is required to confirm the bearishness. Conversely, a break of 1.6600 zones will bring the bullishness back into focus.
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, selling the pair below 1.6420 targeting 1.6190 and stop loss above 1.6610 might be appropriate.|