The pair continues to trade structurally within the descending channel over medium term basis which started with the breach of the general bullish trend support at 0.9000; and after extending beyond the main correction level of 38.2% and 61.8% for the entire upside wave that started from 0.7692 to the historic high of 0.9802, the 76.4% was a strong barrier against the downside movement, pushing the pair to the upside which so far is a retest to the breached critical support at 0.8400.

This level represents the neckline for a big pattern over daily basis, where the breach was supported by a previous bearish pattern at 0.8600 which accelerated the downside move.
Stochastic is providing overbought signals which support the likelihood for the continuation of the downside move as the pair still has southern targets to be reached which start with the breach of 0.8190 towards 0.7800 then the bottom for the upside wave at 0.7692.
The medium term trend remains bearish as far as trading is below 0.8600 which resembles the resistance for the current bearish channel and the breached neckline for the bearish pattern.

By: Yasir Mubarak
Senior Technical Analyst