The pair declined sharply yesterday to settle below 128.40 and then 127.00, while momentum indicators are still forcing downside pressures, where we expect more bearishness today to retest the previously breached neckline around 125.65. The SMA 50 continues to contradict the negativity seen on momentum indicators and supports the pair from below, which in result supports the double bottom pattern to remain valid. Therefore, we remain neutral today, observing the pair's behavior between the critical support of 125.65 and the resistance at 128.40.
The trading range for today is among the major support at 125.00 and the major resistance at 129.00.
The short-term trend is to the downside as far as 150.00 remains intact targeting 112.00.
|Recommendation||Based on the charts and explanations above we remain neutral, awaiting more confirmations|