In line with our yesterday's classical scenario, the pair collapsed below 38.2% Fibonacci of the upside rally from 129.50 to 135.50. This sharp decline is seen as a normal price behavior due to the bearish effect of the double top pattern, which we highlighted in our weekly report. Now, more bearishness could be seen todayas the pair didn't reach the scientific technical objective of the pattern, whilst the candlestick formations are definitely bearish. Furthermore, AROON gave off an obvious negative sign, confirming the strength of the recently established bearish correction. Fibonacci level of 61.8% is under our technical microscope for the time being.
The trading range for today is among key support at 130.50 and key resistance at 135.50.
The general trend over short term basis is to the downside, targeting 118.80 as far as areas of 150.75 areas remain intact.
|Recommendation||Based on the charts and explanations above our opinion is, selling the pair around 133.60 targeting 131.20 and stop loss above 135.35 might be appropriate.|