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The long upper wick of yesterday's candlestick shows that the pair started to lose its upside steam, while the upper line of Keltner channel proved that it is a good resistance. Stochastic overlapped negatively; whilst the four hour candlestick formation added further confirmation that the pair is on its way to achieve more extended downsidetechnical targets for the bearish harmonic butterfly pattern. Breaching 129.40 is required to accelerate the awaited downside wave. On the other hand, breaching 132.50 will give reason for concern.
The trading range for today is among key support at 126.70 and key resistance at 133.15.
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 with a breakout below 129.40 targeting 126.25 and stop loss above 131.70 might be appropriate.|