The pair descended sharply yesterday confirming the efficiency of the negative divergence that appeared on RSI 14 indicator, thus, we still see chances for achieving additional downside actions over intraday basis since the path is now clear towards 38.2% Fibonacci level for the upside wave, from B point to the peak around 115.90. Conversely, we should be careful as a break of 115.60 zones will activate the bullishness of the previous discussed head and shoulders bottom pattern. This awaited correct does not mean that the suggested Elliott count is invalid since it might represent an internal wave within C wave; therefore, we will keep a watch out for the weekly closing cautiously to pinpoint the upcoming move.
The trading range for today is among key support at 112.40 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.
Support114.25113.65113.15112.80112.40Resistance115.00115.25115.75116.00116.70RecommendationBased on the charts and explanations above our opinion is, selling the pair around 114.95 targeting 112.80 and stop loss above 116.35 might be appropriate.