In addition to our bearish scenario of the daily basis under the negative pressure of the descending channel and Ribbons lines we see on the secondary image of the hourly interval hoe a potential head and shoulder pattern is under preparation. Thereby, we hold onto our suggested negative scenario over intraday basis while a breakout below 112.90- the neckline- is needed to activate our outlook.
The trading range for today is among key support at 110.40 and key resistance now at 116.40.
The general trend over short term basis is to the downside, targeting 97.90 as far as areas of 132.50 remain intact.
Support112.90111.90111.05110.40109.50Resistance113.60114.25115.00115.75116.40RecommendationBased on the charts and explanations above our opinion is, selling the pair with the breakout below 112.90 targeting 110.40 and stop loss above 115.00 might be appropriate.