From levels below 124.65, the pair gathered downside momentum affected by the descending channel and the classic negative factors we mentioned in our weekly report, where the pair is currently attempting to test the the previous bottom and the support at 123.20. We think that the pair will attempt to breach this level to continue to the downside toward 122.20, where a new intraday descending channel has developed (colored in blue) supporting the continuation of the downside move.
The trading range for the week may be among the major support at 120.80 and the major resistance at 127.30.
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 around 124.00 targeting 122.20 and stop loss above 125.00 might be appropriate.|