The pair breached the resistance of the descending channel shown above followed by a daily closing above the level, and this may be an initial signal that the pair is heading to reverse the intraday bias to acquire some upside correction. On the other hand, the 50-EMA forms a resistance now at 120.30 and stochastic has entered overbought areas and this may pressure the pair to attempt resuming the bearish trend. Accordingly, we prefer staying aside and monitor trading and daily closing around 118.90 support and 120.30 resistance.
The trading range for the day is expected among the key support at 116.80 and the key resistance at 120.30.
The short term trend is to the downside as far as 150.00remains intact with targets at 112.00.
Support118.90117.95117.40116.80116.25Resistance120.30120.95121.35121.75122.25RecommendationBased on the charts and explanations above we recommend staying aside awaiting more confirmations.