The pair has mildly retraced from the horizontal neckline of the potential head and shoulders top pattern as seen on the secondary image of the four-hour interval. It seems that the market is on its way top form the right shoulder of this pattern before moving downwards once more. Actually, the left shoulder's construction suggests that we may witness one of Bulkowski's caught patterns as it was complicated shoulder; thus, it could be a complex head and shoulders pattern and time will tell. Moving to the main daily chart, we can notice that yesterday's long black candlestick didn't change the trend's exhaustion on Vortex; whilst RSI 14 is still negative suggesting that 61.8% Fibonacci has limited the effect of the harmonic AB=CD pattern. To recap, the bearishness is still favored over intraday basis and a break of 1.5905 will accelerate declines.
The trading range for today is among key support at 1.5720 and key resistance at 1.6295.
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 around 1.6035 targeting 1.5780 and stop loss above 1.6225 might be appropriate.|