We have witnessed sharp fluctuation during the past two days due to facing the neckline for our caught double top pattern over weekly basis at 1.5780. Furthermore, the pair is moving below SMA 50 over four-hour time interval and we recommend reviewing the previous report for the above mentioned technical factors. Now, we will look at the hourly timeframe where we can see a potential bearish double top Gartley pattern with a support line or rather a harmonic trend line connecting its A , C points and their extensions as seen on the graph. This hourly chart spots the importance of 1.5780 over various time frames and a break of which will assist the pair to move bearishly over intraday basis towards C point followed by A point; noting that a break of 1.5870 will send the pair towards 1.5910 zones changing the pattern into a Crab pattern. Anyway, the bearishness is still in favor over intraday basis as far as 1.6000-1.6025 remains intact.
The trading range for today is among key support at 1.5515 and key resistance at 1.6075.
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 1.5780 targeting 1.5475 and stop loss above 1.6000 might be appropriate.|