Trading settles above the 121.00 barrier, while stochastic lost the upside momentum over four-hour basis. Therefore, we think that we may see a downside reversal counting mainly on the latest test of the resistance of descending channel which is controlling current trading. Main targets start at 120.45, a breach below will open the door toward 119.10. Stability below 122.00 is required for our expectations to remain valid.
The trading range for the day may be among the 118.10 support and 122.00 resistance.
The short term trend is to the downside targeting 122.00 so long as 150.00 remain intact.
|Recommendation||Based on the charts and explanations above we recommend selling the pair with hourly closing below 120.45 targeting 119.10 and stop loss with hourly closing above 121.50 might be appropriate.|