During the past ten days, the pair has collapsed from 1.6450 -Cpoint- respecting our negative outlook. Harmonically speaking, we can see potential harmonic butterfly pattern which we add to our classical weekly outlook, where its CD leg is in progress. The break below the pivotal support -turned into resistance- of 1.6105 zones is a technical catalyst that argues us to suggest more bearishness towards D 1 at 1.5960 according to Fibonacci rhythmic dominating the daily graph. But, the consecutive negative pressure indicates that D 2 at 1.5785 will be the main target for the butterfly's CD leg. Stochastic may cause some kind of fluctuation but we don't think it will prevent the pair form moving lower over intraday basis since MACD traditional is definitely negative; whilst the bearishness is covered by SMA 50.
The trading range for today is among key support at 1.5780 and key resistance at 1.6310.
The general trend over short term basis is to the downsidetargeting 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 1.6105 targeting 1.5960, followed by 1.5875 and stop loss above 1.6250 might be appropriate.|