Sharp inclines which occurred during the Asian session shows how solid is the Fibonacci correctional levels of 61.8% for the suggested AB leg. Therefore it seems that the market is forming the CD leg for the harmonic AB-CD pattern as seen on the provided four-hour chart. Stochastic and AROON are providing us with positive signs. A break of SMA 50-111.60- is needed to activate the harmonic pattern. To conclude, possible bullish actions might be seen over intraday basis.
The trading range for today is among key support at 108.50 and key resistance now at 113.60.
The general trend over short term basis is to the downside, targeting 97.90 as far as areas of 132.50 remain intact.
Support110.50110.00109.45109.00108.50Resistance111.35111.60112.10112.85113.60RecommendationBased on the charts and explanations above our opinion is, buying the pair with a breakout above 111.60 targeting 113.60 and stop loss below 110.40 might be appropriate.