Yesterday, the pair has moved sharply downwards closing below 38.2% Fibonacci of the wave from 1.2625 to 1.3485 and also below SMA 50-colored in red- as seen on the provided daily chart. SMA 100-blue- succeeded in limiting this aggressive decline but we don't believe that it can prevent the pair from re-testing the psychological level of 1.3000 followed by 61.8% level since Stochastic continues reflecting the strength of the bearish momentum. To recap, our overview remains negative over intraday basis.
The trading range for today is among key support at 1.2975 and key resistance at 1.3320.
The general trend over short term basis is to the downside, targeting 1.1865 as far as areas of 1.3550 remain intact.
|Recommendation||Based on the charts and explanations above our opinion is, selling the pair around 1.3180 targeting 1.2975 and stop loss above 1.3320 might be appropriate.|
Technical analysis for precious metals with major support and resistance levels and recommendations for 18-08-2009