Morning Report

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The pair moved violently to the downside, influenced by the bearish harmonic crab pattern, which we discussed in details in yesterday's midday report. The potential reversal zones of this pattern played an accurate role in creating consecutive bearish candlestick formations and thus, we believe that more downside actions could be seen over intraday basis, supported by the negativity appearing on RSI14. This harmonic scenario of the four hour interval supports the bigger bearish picture, which you can review via clicking on the weekly report. Finally, a breakout below 127.30 will add further negative pressure.

The trading range for today is among key support at 124.30 and key resistance at 130.50.

The general trend over short term basis is to the downside, targeting 118.80 as far as areas of 150.75 areas remain intact.

Previous Report

Weekly Report

Support126.80126.25125.50125.00124.30
Resistance127.90128.40129.40130.00130.50
RecommendationBased on the charts and explanations above our opinion is, selling the pair around 127.75 targeting 125.00 and stop loss above 129.45 might be appropriate.