Technical outlook and chart setups:
The pair is proving to be an ideal candidate to initiate short positions around the 1.4750 levels. As seen here, the single currency pair has staged an impressive counter trend rally as expected and discussed yesterday. It is therefore recommended to initiate short positions around the 1.4720/50 mark. Risk shall remain at 1.4900 levels. Immediate resistance is at 1.4750 (the fibonacci 0.618 retracement), followed by 1.48 and 1.49; while supports are spread through 1.4350, followed by 1.4200 and 1.4 respectively. The downside extensions are pointing at 1.4 levels. This down leg should be achieved very quick.
Trading recommendations:
Sell at 1.4700/50, stop at 1.4900, target is at 1.4 and lower
Good luck!
