The pair descended yesterday and managed today to stabilize in trading below 87.00 to currently touch 86.25, which has been considered yesterday a possible reversal level for the combined bullish harmonic technical pattern, where one of them has taken an AB=CD formation. Today, chances of a bullish direction remain intact as long as 86.25 achieves stability and is able to withstand the negative pressure or else the bullish harmonic pattern will fail and the pair will continue to move to the downside. We maintain a neutral stance this morning as we await assurance of strength or weakness of 86.25.
The trading range for today is among the key support at 84.10 and the key resistance at 88.80.
The short term trend is to the downside as far as 101.65 remains intact with targets at 82.60.
Support86.2585.7585.3585.1084.80Resistance86.8087.0087.9588.4588.80RecommendationBased on the charts and explanations above our opinion is maintaining a neutral stance to insure the strength or weakness of 86.25, might be appropriate.