With the sharp decline seen on Friday, and the opening bearish gap for this week, still areas of 111.05 remained intact. This signals that the pair might attempt to return to the bullishness, and that will be confirmed with stability above 61.8% correction of CD leg at 112.10 of the bullish harmonic Bat Pattern. Momentum indicators are negative and accordingly the pair is required to maintain stability above 110.05 and preferably 111.05 to confirm our bullish expectations.
The trading range for this week is among key support at 108.85 and key resistance now at 115.40.
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 buying the pair with four-hour closing above 1112.10 targeting 115.40 and stop loss with four-hour closing below 111.05 might be appropriate this week|