The pair continued its upside correction of the entire downside rally, occurred in the previous week. The same negative signs of the bigger picture remain intact as it is still stable below SMA 50; whilst OsMA and Stochastic are still negative. Having a look at the current correction, we will find out that the pair is approaching 61.8% Fibonacci retracement of the aforesaid downside wave from 135.50 to 131.10 zones as seen on the secondary image of the four hour interval. Since we look at the current move as a correction, we still see chances for resuming the bearishness of the bigger timeframe but we need a breakout below 132.85 zones-38.2% Fibonacci- to make sure that the bearish signs are efficient enough to send the pair to the downside.
The trading range for today is among key support at 131.05 and key resistance at 136.20.
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 132.85 targeting 130.55 and stop loss above 134.50 might be appropriate.|