Technical Analysis for EURO

Technical Analysis for EURO

The pair sharply dropped due to trading below 1.3540 levels yesterday, affected by AB=CD bearish harmonic Pattern. The pair stabilized below the first target of the harmonic pattern represented in 38.2% correction at 1.3440 levels. stability below 38.2% correction would extend the downside move reaching the second target at 1.3270 levels (represented in 61.8% correction of CD Leg of the pattern), passing by 50% correction of the minor support at 1.3355 levels. The possibility of a bearish move remains valid by stabilizing below 1.3440 levels, while the downside correction failed to breach 1.3540 levels.

The trading range for today is among the key support at 1.3270 and key resistance at 1.3540.

The general trend over short term basis is to the upside targeting 1.4375 as far as areas of 1.2990 remains intact.

Support: 1.3405, 1.3355, 1.3310, 1.3270, 1.3235
Resistance: 1.3440, 1.3485, 1.3500, 1.3540, 1.3600

Recommendation Based on the charts and explanations above, our opinion is selling the pair below 1.3440 targeting 1.3355, 1.3310 then 1.3270 and stop-loss with four-hour closing above 1.3500 might be appropriate