The pair extended its upside recovery whereas it is currently trapped between 50% and 38.2% Fibonacci retracement levels of CD leg of the previous caught bearish harmonic butterfly pattern. Meanwhile, there is a contrarian between the obvious negative sign on AROON and the positive signs that started to appear on momentum indicators. The middle line of Keltner channel also represents a solid resistance and thus, we prefer staying aside today until we see how the pair will behave around 136.20 as a daily closing above it will indicate that the effect of our harmonic pattern has been limited earlier around the second technical target at 61.8% retracement of CD leg.
The trading range for today is among key support at 132.50 and key resistance at 138.40.
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, staying aside until a clearer sign appears to pinpoint the upcoming big move.|