The pair traded positively yesterday approaching the resistance level for the intraday downside move at 111.40 as shown in image, while stochastic is gradually loosing upside momentum. Therefore, we think a downside reversal may be in progress from this resistance level and the pair to resume the main downside trend targeting 108.95 followed by 107.55. Breaching 111.40 may push the pair initially toward 112.75.
Trading range for the week is among the major support at 107.55 and the major resistance at 111.85.
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 111.40 targeting 108.95 and stop loss above 112.70may be appropriate.|