The pair soared, causing a failure for the previous suggested head and shoulders top pattern over four hour interval. This incline forced us to have a look at the daily chart, where an Elliott cycle appeared, clarifying that C wave might be in progress. Classically, we have been able to catch a potential head and shoulders bottom pattern with a neckline at 115.45-115.60 zones. Of course, we need a breakout alongside daily closings above this level to talk about the technical target of this classical pattern. If this breakout occurred, the suggested Elliott sequence will be confirmed. As far as the pair remains below this aforesaid neckline, we will not predicate a bullish trend and thereby, we will be neutral over intraday basis until this breakout occurs.
The trading range for today is among key support at 112.25 and key resistance now at 116.80.
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, staying aside until a clearer sign appears to pinpoint the upcoming big move.|