The pair is still trapped within a tight range since morning and it failed to maintain levels above C point as seen on the provided four hour chart. This consolidation process above the initial support of 111.80-111.60 seems as if it is gathering the momentum it needs to breach these support zones. The negative divergence of RSI still exists, supporting our technical idea that the harmonic 5-0 pattern is forming its last leg-CD leg-. To recap, we still see chances of achieving potential downside move over intraday basis.
The trading range for today is among key support at 110.50 and key resistance now at 114.75.
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 with a breakout below 112.10 targeting 110.00 and stop loss above 113.80 might be appropriate.|