The pair is trading with slight positivity since morning affected by positivity on momentum indicators, while we are still waiting for some upside correction testing 122.00 areas before resuming the intraday downside move for today. The 50 EMA continues to pressure trading negatively, while the main target to the downside is located at 119.50 which is the retest resistance level for the main descending channel that was breached previously.
The pair continued to trade narrowly yesterday, while stochastic is losing the bullish momentum over the four-hour time-frame. Therefore, we continue to anticipate intraday bearishness supported by the negative pressure coming from the 50 EMA, taking into consideration that breaching 120.70-120.40 support area will accelerate the bearish move.
The trading range for the day may be among the 119.50 support and 122.60 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 around 122.00 targeting 120.35 and stop loss with four-hour closing above 122.60 may be appropriate.|