Morning Report

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In line with our yesterday's midday report, the pair moved sharply downwards where it succeeded in closing below 76.4% Fibonacci of CD leg of the suggested bearish harmonic pattern. Classically, it needs to retest this broken level and also it needs to retest the lower line of Keltner channel before achieving additional bearishness over intraday basis based on the harmonic rules which propose an extended downside wave towards 100% Fibonacci level after this aforesaid breakout. Note that, Stochastic might cause some kind of fluctuation but we don't believe that it will change the negative direction since the candlestick formations are definitely bearish.

The trading range for today is among key support at 128.60 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.

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RecommendationBased on the charts and explanations above our opinion is, selling the pair around 132.50 targeting 130.00 and stop loss above 134.35 might be appropriate.