The pair slipped sharply to the downside coming below SMA 50 once more, as seen on the provided four hour chart. Henceforth, the negative effect of the rising wedge pattern is still in favor and more bearishness is to be seen towards the extended technical objectives, which could be seen over intraday basis. The extended targets start at 127.2% Fibonacci projection of the upside rally from 105.40 to 112.15, followed by 161.8% levels. We remind that the bearish harmonic effect of the proposed butterfly still exists. Vortex indicator is still showing the strength of the bearish trend.
The trading range for today is among key support at 106.15 and key resistance now at 111.05.
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 108.90 targeting 106.80 and stop loss above 110.55 might be appropriate.|