Morning Report

The decisive breakout below 1.6420 was the main technical catalyst behind forming yesterday's long black candlestick pattern as seen on the subsidiary image. Now, some kind of mild retrace might be seen to retest the aforesaid broken areas before resuming the bearishness of our accurate negative divergence. The reversal classical pattern Megaphone is still in progress; thus, we hold onto our bearish scenario over intraday basis according to those technical factors, mentioned above and a break of 1.6310 will add huge negative pressure.

The trading range for today is among key support at 1.6025 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.

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Weekly Report

RecommendationBased on the charts and explanations above our opinion is, selling the pair around 1.6420 targeting 1.6135 and stop loss above 1.6615 might be appropriate.