The pair succesfully breached the support of the rising wedge formation explained yesterday, and this opens the door toward more intraday downside movement. Some fluctuations is possible due to the positivity on mometum indicator and we may witness an upside bias to retest 112.30-112.75 area before heading toward our inital target at 110.25. Stability below 112.75 is required for our expectations to be valid.
Trading range for the day is among the major support at 109.55 and the major resistance at 113.65.
The short term trend is to the downside targeting 100.00, as long as 123.30 remain intact.
|Recommendation||Based on the charts and explanations above we recommend selling the pair around 112.30 targeting 110.25 and stop loss above 113.00 may be appropriate.The pair breached the ascending support of the minor trend we mentioned yesterday, where the pair failed to breach the suggested neckline at 0.8845, therefore the awaited bullish scenario is invalidated, There is a big chance now to test the ascending support of the rising wedge formation that we mentioned in our weekly report, supported by the negative pressure from the 50 EMA. In general, we need to observe trading during the upcoming period specially around the sensitive levels among 0.8755 support and 0.8845 resistance, where breaching one of them will hint for the direction of the next move. Trading range for the day among the major support at 0.8580 and the major resistance at 0.9000. The short term trend is to the upside targeting 1.0370, as long as 0.8165 remain intact.|