Last week's closing settled at the resistance for the main descending channel shown above. This week's opening was clearly negative signaling further downside movement for this week. The MA 50 is offering continuous downside pressure on intraday trading and supports our expectations for the pair to target the 104.25 then 103.25 while the positivity on momentum indicators will keep the volatility evident for the coming period around the main resistance. We should mention here that a daily closing below 105.25 supports our downside expectations.
The trading range for this week is expected among the key support at 102.55 and the key resistance at 106.80.
The short term trend is to the downside as far as 123.30 remains intact with targets at 94.80.
|Recommendation||Based on the charts and explanations above our opinion is selling the pair around 105.85 targeting 104.25 and 103.25 and stop loss above 106.80 might be appropriate this week|