Morning Report

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Respecting our bearish harmonic scenario, the pair collapsed breaching the Fibonacci projection level of 127.2% for the CD leg of the bearish harmonic butterfly pattern at 127.40 as seen on the provided daily graph. The chart is still showing signs of weakness since Vortex-trend indicator- became more negative; whilst Stochastic is moving obviously to the downside. Consequently, we will continue obeying the harmonic rules, looking forward to see a visit for 161.8% projection of CD leg at 123.95 zones, noting that the aforesaid level meets the support line of the descending channel that dominated the movements from D point and this is considered to be a classical confirmation for our successful harmonic story started at 139.95 zones.

The trading range for today is among key support at 123.95 and key resistance at 131.05.

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 around 127.40 targeting 123.95 and stop loss above 129.65 might be appropriate.