Morning Report

We are facing three obvious technical factors as follows:

The pair has touched 7-month high at 1.6165 yesterday as we anticipated earlier and it represents a hard technical obstacle.

Stochastic becomes negative as projected.

A negative divergence appears on RSI 14 over four-hour interval.

Therefore, the PRZ of the bearish harmonic butterfly pattern might be activated, thus; potentialdownside move might be seentoday. A break below 1.6060 will accelerate the bearishness while our risk limit resides at 1.6250 zones.

The trading range for today is among key support at 1.5880 and key resistance at 1.6300.

The general trend over short term basis is to the downside, targeting 1.4225 as far as areas of 1.6875 remain intact.

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Weekly Report

RecommendationBased on the charts and explanations above our opinion is, selling the pair around 1.6165 targeting 1.5975 and stop loss above 1.6250 might be appropriate.