The pair reached the resistance of the ascending correctional channel shown above and significantly approached 61.8% Fibonacci correction of the downside move, which started at 111.55 and ended at 97.00, while momentum indicators are almost within overbought areas, which could trigger a downside reversal to retest areas around 104.25. In general, we expect the upside move to extend over intraday basis, targeting the resistance of the descending main channel, which also resides 76.4% Fibonacci correction at 108.10, noting that a breach of 104.25 should trigger a downside movement and signal the end of the upside correction.
The trading range for this week is among the major support at 101.85 and the major resistance at 108.10.
The short-term trend is to the downside as far as 123.30 remains intact, targeting 94.80.
|Recommendation||Based on the chart and explanations above, our opinion is buying the pair around 104.25, and taking profit at 106.00 and then at 107.20 and stop loss below 103.25 might be appropriate|