The pair failed to maintain levels above 115.60 zones for the third consecutive day, encouraging us to depend on the negative divergence- appearing on RSI 14- in order to suggest potential downside correction over intraday basis. Actually, we should be very careful since a break and stability above 115.60 zones, followed by 116.35 will be an indication that the previous explained head and shoulders is activated-check the weekly report-. That is why we should watch out the price behaviors of this pair very cautiously. At the same time, we need to witness a four hour closing below 114.75 to make sure that the captured divergence is efficient enough to bring the proposed correction for today.
The trading range for today is among key support at 113.15 and key resistance now at 116.35.
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 114.70 targeting 112.80 and stop loss above 116.35 might be appropriate.|