Moving to the daily studies, where we can see how the pair's upside attempt was resisted as well yesterday around the pivotal resistance areas of 1.5850. It went downwards sharply during the Asian session where it is currently approaching our yesterday's defined key support of 1.5690 while Stochastic is showing off an obvious bearish sign that may help it to penetrate the aforesaid support. Hence, we hold onto our bearish anticipations, supported by two technical catalysts:
The coverage from SMA 50.
Stability below 38.2% Fibonacci level of the entire downside wave from 1.6615 to 1.5270.
The trading range for today is among key support at 1.5490 and key resistance at 1.6000.
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 1.5690 targeting 1.5440 and stop loss above 1.5850 might be appropriate.|