In line with our last week's scenarios, the pair declined sharply as seen on the provided four-hour chart. Now, theses declines succeeded in forming the CD leg of the bullish harmonic structure, where the pair found a solid support around 127% Fibonacci level. Stochastic and the candlestick formation suggest that, the pattern has been completed and possible bullishness could be witnessed during this week.
The trading range for this week is among key support at 105.00 and key resistance now at 112.10.
The general trend over short term basis is to the downside, targeting 97.90 as far as areas of 132.50 remain intact.
Support108.50107.60106.50105.90105.00Resistance109.45110.00110.50111.05112.10RecommendationBased on the charts and explanations above our opinion is, buying the pair from 108.50 targeting 111.90 and stop loss below 106.50 might be appropriate.