RSI 14 as a representative for momentum indicators is now very close to overbought areas and that interprets that the pair is presently gathering the momentum it needs to move lower over intraday basis. The right shoulder of our suggested head and shoulders top pattern might be in progress but we need two things;
- Achieving a four hour closing below SMA 50-colored in red-
- Breaching the neckline of this reversal pattern at 112.25.
Conversely, areas of 114.50 should hold to protect our anticipations.
The trading range for today is among key support at 111.05 and key resistance now at 115.40.
The general trend over short term basis is to the downside, targeting 97.90 as far as areas of 132.50 remain intact.
|Recommendation||Based on the charts and explanations above our opinion is, selling the pair around 113.60 targeting 111.65 and stop loss above 114.50 might be appropriate.|