SMA 50 prevented the pair from achieving additional upside recovery, while a bearish engulfing candlestick pattern was ideally drawn on the four hour interval. Thereby, we believe that the pair has fathered the momentum it needs to resume the descending wave towards the extended technical targets of the rising wedge pattern at 161.8% Fibonacci of the upside rally from 105.40 to 112.15. RSI 14 started to show signs of weakness, while Vortex is positive and this contradiction between momentum and trend indicator might be canceled out once the pair breaches the pivotal support of 107.30.
The trading range for today is among key support at 105.40 and key resistance now at 110.50.
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 107.95 targeting 105.90 and stop loss above 109.45 might be appropriate.|