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In line with our yesterday's suggested slight recovery, the pair moved towards the previous broken support-turned into resistance- around 100% Fibonacci of CD leg for the harmonic butterfly pattern. Now, the middle line of Keltner channel-blue line- may pressure the pair negatively pushing it lower, noting that Vortex indicators still reflects an obvious bearish case. To recap, we still see chances for resuming the downside rally of reaching the extended technical targets of our caught bearish harmonic butterfly pattern which proved its efficiency during the past two months. Breaching through 130.05 with a daily closing will delay the bearishness; whilst breaching 127.35 will bring panic selling pressures.
The trading range for today is among key support at 126.00 and key resistance at 132.50.
The general trend over short term basis is to the downside, targeting 118.80 as far as areas of 150.75 areas remain intact.
|Recommendation||Based on the charts and explanations above our opinion is, selling the pair around 129.40 targeting 126.00 and stop loss above 131.60 might be appropriate.|