The long upper shadow of yesterday's candlestick proves the solidity of 61.8% Fibonacci retracement for the downside move from 133.05-top of December 13- to 125.50-trough of December 30- as seen on the provided daily chart. Additionally, the upside correction from 125.50 to the current levels started to show signs of weakness since the movements are wedged within a continuation pattern. SMA 50 and Stochastic signal that the pair has finished its correction and it is presentlypreparing to resume the major downside trend.
The trading range for today is among key support at 126.25 and key resistance at 132.50.
The general trend over short term basis is to the downside, targeting 118.80 as far as areas of 150.75 areas remain intact.
|Recommendation||Based on the charts and explanations above our opinion is, selling the pair with a breakout below 129.40 targeting 126.25 and stop loss above 131.60 might be appropriate.|