Morning Report

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As planned, the pair succeeded in retesting the previous broken extended level of 127.2% of the CD leg for the bearish harmonic structure from below. Now, signs of exhaustion started to appear on the smaller time frames; thus, we believe that the upside correction from the trough of 124.70 has lost its steam and the pair is on its way to reach the Fibonacci projection level of 161.8% over upcoming sessions. Note that the bearish channel is the most accurate technical factor appearing on our daily graph that signals resumption for the bearish trend started from 139.95.

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.