The pair has declined violently, clearing the pivotal support of 1.5495-turned into resistance- as seen on the provided graph. Actually, the pair has respected yesterday's midday scenario flawlessly where it started to slump after drawing the long upper shadow that we treated as a retest of the neckline for the secondary double top pattern appearing on the four-hour graph and we recommend reviewing the previous report for more details about this technical process-. Now, we believe that, the initial support of 1.5330 is threatened once more due to the bearish effect of the bigger picture where we think that, the pair is forming the CD leg for the double harmonic structure Bat and Crab as seen on the main chart. Only a break of 1.5720-1.5780 can delay the bearishness, while breaching 1.5330 will ease the path towards 1.5180 areas.
The trading range for today is among key support at 1.5180 and key resistance at 1.5720.
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 1.5495 targeting 1.5180 and stop loss above 1.5690 might be appropriate.|