The pair returned to trade around the critical resistance of the long-term descending channel. Stochastic and RSI are negative. But, the pair is stable above the ascending main support shown above in green. Therefore, trading with stability above 108.70 could trigger positivity back and indicate that the downside movement was a retest of the mentioned resistance. Consolidation above the mentioned level should relieve momentum indicators from the negativity.
The trading range for this week is among the major support at 104.25 and the major resistance at 110.75.
The short-term trend is to the downside as far as 123.30 remains intact, targeting 94.80.
Based on the chart and explanations above, our opinion is buying the pair with a 4-hour closing above 108.70, targeting 109.75 and 110.75 and stop loss below 107.90 might be appropriate