Bearishly influenced by yesterday's explained bearish engulfing candlestick pattern, the pair has slumped attacking SMA 50 as seen on the provided daily graph. Moreover, we have finally witnessed a negative closing below the pivotal support areas of 1.6250; thus, the path is classically clear towards 1.6105 zones, followed by the psychological levels of 1.6000. The bearish sign on Stochastic became clear; whilst MACD traditional kept its negativity, adding further confirmation to our constructive bearish overview. A break of 1.6190 will accelerate the awaited downside wave.
The trading range for today is among key support at 1.6000 and key resistance at 1.6500.
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 1.6250 targeting 1.6025 and stop loss above 1.6430 might be appropriate.|