The pair is trapped within a very tight range since the opening of this week due to facing the cluster resistance around 115.45-115.60 zones. Therefore, we still see chances for achieving potential downside recovery over intraday basis based on the negative divergence appearing obviously on the daily graph. A breakout below 114.75-114.75 areas is urgently required to confirm this downside wave. Conversely, a break of 115.60 will activate the potential head and shoulders bottom pattern since the aforesaid areas represent the neckline of this pattern. That is why we should make sure that any breakout below 114.70 zones is not a false breakout.
The trading range for today is among key support at 112.80 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.
Support114.25113.65113.15112.80112.40Resistance115.25115.75116.00116.35116.70RecommendationBased 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.