With a long black candlestick that has engulfed Friday's sharp recovery; the bearishness came back into focus. The pair has slumped aggressively breaching through the initial support of 1.5905 opening the door up for further weakness towards the next Fibonacci level of the entire downside rally from 1.6615 to 1.5270 since 61.8% has proved its solidity. The secondary image explains why we were well-disposed to the bearishness as we mentioned in our yesterday's midday report where the daily closing was achieved below SMA 50-colored in red- as seen on our provided graph. Only a break of 1.6125-1.6165 will give us a reason for concern.
The trading range for today is among key support at 1.5630 and key resistance at 1.6075.
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 1.5920 targeting 1.5635 and stop loss above 1.6105 might be appropriate.|