The pair continues trading alongside our previously provided analysis on May 17 and May 31. The pair managed to retest the breached support which meets the neckline for the bearish pattern shown below.
The pair declined strongly attaching 38.2% correction for the entire bullishness from 0.6007 till 0.9405, where this level held against the pair’s downside pressure triggering a slight upside correction settling for the 38.2% correction for the last downside wave.
The pair is now fluctuating around the focal support at 0.8105 which is the neckline for another bearish pattern as breaching it extends the bearishness over short term basis towards 0.7705 and then farther ahead towards 0.7300. The targets for the former bearish pattern are not acquired yet which reside at 0.7705 which encourages us to expect further downside pressure supported by settling below 100 MA and the downside trend on Stochastic.
In general, we expect further short term bearishness towards aforesaid targets, though the short term trend requires steady trading below 0.8605.