Morning Report

The initial resistance of 1.5495 has sent the pair violently to the downside where it created a clear long black candlestick pattern over four-hour time scale as seen on the secondary image. It seems that the correctional movements from the significant support of 1.5330 has been limited and the pair is on its way to visit the aforesaid support 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 projected bearishness, while breaching 1.5330 will ease the path towards our technical objective around 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 downsidetargeting 1.4225 as far as areas of 1.6875 areas remain intact.

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RecommendationBased on the charts and explanations above our opinion is, selling the pair around 1.5460 targeting 1.5180 and stop loss above 1.5670 might be appropriate.