Morning Report

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The overbought sign appeared on Stochastic yesterday hasn't been fixed completely until now but we can see a negative sign appearing on Vortex clarifying that the bearish trend is strong enough to send the pair lower. Actually, the pair is still consolidating around 88.6% Fibonacci level of CD leg for our efficient bearish harmonic butterfly pattern and we might see a price explosion to achieve more extended technical targets according to harmonic rules. Focusing now is on the full correctional level of CD leg where a break of which will accelerate our negative scenario.

The trading range for today is among key support at 128.40 and key resistance at 134.80.

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 131.65 targeting 128.40 and stop loss above 133.80 might be appropriate.