Breaching the main resistance for the downside move makes the bearish falling wedge positive. Also, we have a bullish harmonic Bat Pattern and the pair is currently above 38.2% correction, which is the first target for the pattern and might push the pair further to the upside this week towards 61.8% correction for the pattern at 112.05; breaching this level will extend the targets towards 76.4% at 113.30. Our expectations require steady trading above 108.70 with daily closing. Stochastic is overbought which might increase the volatility.
The trading range for today is among key support at 106.80 and key resistance now at 113.30.
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, we our opinion is buying the pair around 110.05 targeting 113.30 and stop loss below 108.75 might be appropriate this week|