Morning Report

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Finally, we have got the required negative sign from Stochastic as seen on the provided daily graph. The pair moved sharply downwards after touching 50% Fibonacci of CD leg yesterday entering the span of Keltner channel once again. This downside move proved the solidity of the resistance level of 135.00 zones. Now, breaching through 61.8% is required to send the pair lower to 76.4%of CD legsince the bearish harmonic scenario of reaching the extended objectives of the bearish harmonic Butterfly pattern is still valid.

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.

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RecommendationBased on the charts and explanations above our opinion is, selling the pair with a breakout below-four hour closing below- 133.80 targeting 131.05 and stop loss above 135.60 might be appropriate.