Further confirmations have been provided for the downside trend mentioned yesterday, which we will clarify through classic analysis. We can see that the descending channel's resistance at 109.50 with scattered resistance areas 108.95-109.00 all supporting our expectations for the pair to move to the downside today. Stochastic is signaling to the upside, which might increase the expectations for volatility and potential for a slight upside correction; yet in general, trading below the resistance for the downside wave keeps the suggested bearishness intact.
The trading range for today is among key support at 105.90 and key resistance now at 110.85.
The general trend over short term basis is to the downside targeting 97.90 as far as areas of 132.50 remain intact.
Support108.05107.60107.20106.50105.90Resistance109.00109.45110.00110.50110.85RecommendationBased on the charts and explanations above, our opinion is selling the pair with the breach of 108.05 targeting 105.95 and stop loss above 109.60 might be appropriate.