The pair went sharply downwards, retesting the initial support levels around 109.45 once again as seen on the provided four hour chart. This level should be breached to ease the path for additional downside movements. The rising wedge pattern -continuation pattern- is still in favor as it proved its efficiencyduring the previous and current weeks.It can assist the pair to breach the aforementioned level in the third technical try. SMA 50 is still acting the role of a good ceiling for the allover bearishness.
The trading range for today is among key support at 106.15 and key resistance now at 112.40.
The general trend over short term basis is to the downside, targeting 97.90 as far as areas of 132.50 remain intact.
|Recommendation||Based on the charts and explanations above our opinion is, selling the pair around 110.20 targeting 108.30 and stop loss above 111.90 might be appropriate.|