The pair managed to breach 107.00 barrier and settled below the level approaching gradually the support of the minor ascending channel at 106.15. In general, we think that there is a good possibility for testing the aforementioned support and breaching it to activate the effect of the continuation flag pattern we mentioned in our previous reports. Accordingly,we expect an intraday downside move for today but requires first a breach of the aforementioned support and steady trading below 107.65.
The trading range for the day may be among the 104.95 support and 108.40 resistance.
The short term trend is to the downside targeting 94.80 so long as 123.30 remain intact.
|Recommendation||Based on the charts and explanations above we recommend selling the pair with a breach below 106.15 targeting 104.95 and stop loss above 106.95 may be appropriate.|