Morning Report

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One more negative closing below 100% retracement of the bearish harmonic butterfly was seen yesterday. The secondary image of the four hour time interval shows the bearish candlestick formation with a bearish closing below SMA 50; thus, the negative scenario of resuming the downside movetowards the extended technical targets of the aforementioned harmonic pattern may continue over intraday basis. Note that, Vortex reflects a case of technical hesitation but Stochastic supports the negative scenario.

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.

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RecommendationBased on the charts and explanations above our opinion is, selling the pair below 129.40 targeting 126.25 and stop loss above 131.70 might be appropriate.