Trading settled within a side-way range below the 23.6% Fibonacci level and below the 50 EMA as well, while stochastic is clearly overbought over four-hour basis. Therefore, we think that the effect of the bearish technical pattern that was breached previously by breaking 106.50 remains valid. Accordingly, a downside move is likely today while trading below 106.50 is required to for the bearish expectations to remain valid.
The trading range for the day may be among the 103.00 support and 106.50 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 around 106.05 targeting 104.75 and stop loss with four-hour closing above 106.50 may be appropriate|