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The pair is still trapped within a very tight range since yesterday and having a deeper look at the movements of the previous six trading days, we will see how the pair is also trapped between the middle line and the lower line of Keltner channel. This narrow range suggests that a price explosion is under preparation for the time being. Since the pair has closed below 50% Fibonacci level of CD leg of the bearish harmonic butterfly pattern, we believe that the aforementioned explosion will be to the downside towards 61.8% and 76.4% levels. In result, we hold onto our bearish predications over intraday basis, supported by the negativity appearing on Stochastic.
The trading range for today is among key support at 131.05 and key resistance at 137.30.
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 134.75 targeting 132.40 and stop loss above 136.30 might be appropriate.|