Technical Outlook:
There has been a sequent attempt of a break at 1.4620, and no success yet. Structurally we are optimistic for a breakdown of the 1.42 level in the sessions to come. We would also like to show the other possibility here, if the 1.4650 level is broken on a sustainable basis, the rally will further gain momentum towards the 1.4790 level. For now, Resistances are 1.4620/50 and 1.4790 respectively while Supports are 1.4360 (S1), 1.43 (S2) and 1.42 (S3).
Chart Setup:
The charts still remain constructive for a breakdown. A possible C (Right Shoulder) is being carved out near 1.4620/30 area. Yesterday there was again a bearish candle at the close, suggesting that bears would regain control. For now, we shall maintain short positions with strict stop loss at the 1.4790 zone. But a sustained break of the 1.4650 area will require re-thinking of our trade strategy. We shall watch closely for 1-2 days more before changing our trade plan. Increasing support and constant resistance (1.4620) consolidation could also be a possibility here.
Bottom Line: Lower/Sideways?
Trading Recommendations: Issued Earlier
Sell @ 1.4520/40, Stop @ 1.4790, Target1 @ 1.3950, Target2 @ 1.3800
Best Regards
