Morning Report

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Yesterday's anticipated correction was limited ideally below the full correctional level of CD leg for the efficient bearish harmonic butterfly pattern as seen on the provided daily chart. The aforesaid closing below 130.05 levels in addition to Stochastic entering overbought areas are technical factors that argue us to suggest potential harmonic downside rally targeting the next Fibonacci target at 127.2% projection of CD leg. In the interim, Vortex is still reflecting the strength of the bearish trend.

The trading range for today is among key support at 125.50 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.

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RecommendationBased on the charts and explanations above our opinion is, selling the pair below 129.40 targeting 126.00 and stop loss above 131.60 might be appropriate.