The pair continues to trade with a positive bias since yesterday however it's moving slowly, while a bearish channel may be forming and directing intraday downside move as shown in image. The pair settled at a sensitive level around 111.00 which is a neckline for a potential bullish technical pattern where breaching it may send the pair upward to breach the resistance of the aforementioned downside channel. On the other hand, stochastic is overbought and this may add strength to the neckline. Due to these mixed signals, we will hold onto neutrality and observe the pair around the neckline followed by 111.85. Breaching 110.40 will open the door toward resuming the downside move.
The trading range for the day is among the major support at 108.90 and the major resistance at 112.70.
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 staying aside awaiting more confirmations for the next move.|