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The pair has achieved a sharp decline where it is currently trading below the pivotal support of 129.40 as we anticipated yesterday. This decline is considered to be normal price behavior due to facing the resistance of 100% retracement of CD leg for the efficient bearish harmonic butterfly pattern where the upper line of Keltner channel exists. Henceforth, the path becomes clear towards the next Fibonacci level of 127.2% projection of CD leg supported by the negativity appearing on Stochastic and the bearish candlestick formation over four hour interval. Breaching through SMA 50 added further negative pressure as seen on the secondary image. To conclude, our outlook remains bearish over intraday basis as far as the pivotal resistance of 132.50 remains intact.
The trading range for today is among key support at 126.70 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 126.25 and stop loss above 131.70 might be appropriate.|