Morning Report

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The pair achieved normal bounce from 100% Fibonacci retracement level of CD leg for our caught bearish harmonic butterfly pattern which represented our main technical objective since the opening of this month. This recovery might take the pair towards 76.4% level to retest it from below before moving lower once more to continue the trip or reaching the extended technical targets of the pattern after beating 61.8% retracement earlier. Vortex is still negative confirming our proposed bearish outlook.

The trading range for today is among key support at 128.40 and key resistance at 134.20.

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 131.95 targeting 128.40 and stop loss above 133.65 might be appropriate.