The pair continued to trade positively yesterday to surpass the 106.20 pivotal barrier, however it stopped at the 38.2% Fibonacci correction for latest downside wave that started from 111.90 top to 103.86 bottom. Trading is confined among the aforementioned levels, while stochastic is providing negative signs which may support the pairs' downside move among the descending channel shown in image. Accordingly, we expect an intraday downside move today, however we need a breach of 106.20-105.70 support area first. On the other hand a breach above 106.90 will open the door toward a deeper correction to 108.85.
The expected trading range for the day is among the key support at 103.85 and the key resistance at 107.90.
The short term trend is to the downside so far as 123.30 remains intact targeting 94.80.
|Recommendation||Based on the charts and explanations above we recommend selling the pair with hourly closing below 105.70 targeting 109.85 and stop loss with hourly closing above 106.90 may be appropriate.|