The pair attempts to breach the pivotal resistance at 109.95, where the pair closed last week near this critical level, while momentum indicators continue to provide negative signs, weakening the pair's ability of breaching the awaited level. In general, consolidation above the previously breached resistance of the descending main channel suggests the continuity of the upside move this week, awaiting the pair to provide a daily closing above 109.95 in order for the pair to reach the initial targets at 110.95 and 111.90. Consolidation above 108.30 is necessary.
The trading range for this week is among the major support at 108.35 and the major resistance at 111.90.
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 with 4-hour closing above 109.95, targeting 110.95 and 111.90 and stop loss below 108.95 might be appropriate|