The four hour graph succeeded in drawing an obvious negative divergence on RSI 14 and that is why we believe that the bullishness of Elliott and classical studies -check previous and weekly report for more details- needs will slow down or in other words, the pair needs to breath before resuming the upside journey. Hence, we look forward to see slant downside recovery towards the psychological level around 120.00 in order to relieve momentum indicator before moving upwards once more.
The trading range for today is among key support at 118.65 and key resistance now at 125.00.
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 around 122.00 targeting 119.80 and stop loss above 123.40 might be appropriate.|