In accordance with our previous suggested scenario, the pair slipped violently, forming an obvious bearish candlestick formation as seen on the subsidiary graph. This candlestick formation is expected to bring additional downside actions over intraday basis since the negative effect of the negative divergence is still in progress, pushing RSI 14 to the downside. Therefore, areas around 110.25 will be under our technical microscope where we will meet 61.8% Fibonacci retracement of the upside rally from B to 115.90. For now, we look at the downside move from 115.90 to the current levels as a correction but a break of 109.00 zones will damage the potential classical head and shoulders bottom pattern.
The trading range for today is among key support at 110.25 and key resistance now at 115.00.
The general trend over short term basis is to the downside, targeting 97.90 as far as areas of 132.50 remain intact.
Support112.40111.90111.60111.05110.25Resistance113.15113.60114.00114.25114.75RecommendationBased on the charts and explanations above our opinion is, selling the pair around 113.20 targeting 111.00 and stop loss above 114.95 might be appropriate.