Technical outlook and chart setups:
The single currency pair has reacted sharply as expected, at the much anticipated 1.4900/20 levels. Please note that this area is the 0.618 retracement of the entire down swing between 1.54 and 1.4 levels. As depicted in the 4H chart, an engulfing bearish candlestick pattern emerges. It is recommended to initiate short positions now around 1.4870 levels, with risk above 1.5. Major resistance is fixed at 1.5 levels and major supports are fixed at 1.4750, followed by 1.4550 and lower. A break of 1.47 levels on the downside, shall prove to be extremely bearish.
Trading recommendations:
Initiate short positions now, at 1.4870, stop at 1.5, target open.
Good luck!
