The sharp collapse from 114.00 zones sent the pair below the support line of the rising wedge, which carries the movements from 106.80 areas. This downside action provided us with the following technical factors:
- Areas of 114.00 became stronger resistance.
- The pair came below SMA 50.
- The negative divergence of RSI becomes stronger and the indicator still has downside targets to be reached.
- Vortex became negative.
To conclude, the previous anticipated bearishness which we discussed in the weekly report may dominate becomes clearer and a break of 112.80 could bring panic sell-off action.
The trading range for today is among key support at 111.05 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 around 113.40 targeting 111.60 and stop loss above 114.80 might be appropriate.|