Zooming into the four-hour chart, we will see that the recent bullish attempts is just a correction for the downside wave that started from 130.81. The 38.2% Fibonacci correction level forms a strong resistance while trading is confined among a possible bearish rising wedge formation, these factors along with the negativity on stochastic make us expect a downside bias in general during the upcoming period and main targets reside at 124.00 and 123.00. Achieving this scenario requires a clear breach of 125.90 and stability below 127.05.
The trading range for the day is among the major support at 122.55 and the major resistance at 127.65.
The short term trend is to the downside targeting 112.00 as long as 150.00 remain intact.
|Recommendation||Based on the charts and explanations above we recommend selling the pair with hourly closing below 125.90 targeting 123.30 and stop loss above 127.05 may be appropriate.|