We can spot a harmonic pattern within a bearish channel, where this bearish channel took the form of an AB=CD pattern which might drive the pair to test areas at 105.95 and maybe we might see the extension of CD leg further towards 104.40. At the same time, the main resistance for the descending channel resides with the harmonic pattern providing it with more strength; therefore, we see that trading below the resistance at 109.35 will keep the bearish possibility valid for this week.
The trading range for today is among key support at 104.40 and key resistance now at 110.60.
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 107.60 targeting 104.40 and stop loss above 109.35 might be appropriate this week|