Sharp breakout above the upper line of our caught CT formation, took the pair towards the resistance levels of 135.50 as seen on the provided four-hour chart. Currently, Stochastic is in a real need for some kind of relief before resuming the proposed upside rally over intraday and also short term basis. Wave C of the suggested Elliott count is in progress and still proving its efficiency. The potential resistance resides at 136.20 zones as we discussed several times before. We recommend reviewing the weekly report.
The trading range for today is among key support at 132.50 and key resistance at 139.10.
The general trend over short term basis is to the downside, targeting 118.80 as far as areas of 150.75 areas remain intact.
Support134.80134.25133.60133.15132.50Resistance136.20136.80137.30138.40139.10RecommendationBased on the charts and explanations above our opinion is, buying the pair around 134.80 targeting 137.20 and stop loss below 133.15 might be appropriate.