In line with yesterday's midday technical catch of Stochastic over four-hour time scale, we can see how the indicator overlapped negatively -secondary image- indicating that the pair is gradually losing its upside momentum for the recovery from 1.5270 zones. As we discussed earlier, touching the areas of 1.5780 -neckline of the double top formation- will not change the bearish outlook which is based on this classical probability in addition to the harmonic duplicated probability of forming the CD leg of the duplicated harmonic pattern. Breaching through 1.5555-1.5540 will negate any attempts to re-test 1.5780 and will trigger a panic sell-off.
The trading range for today is among key support at 1.5330 and key resistance at 1.5820.
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 with a breakout below 1.5540 targeting 1.5270 and stop loss above 1.5780 might be appropriate.|