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The pair inclined during the Asian session where it succeeded in surpassing 61.8% retracement of XA leg and this upside action could threaten 50% Fibonacci levels. In the interim, Stochastic started to be more negative and we know that passing the lower or upper line of Keltner channel quickly may indicate an oversold or overbought case. The provided chart shows how the upper line of Keltner channel was penetrated during the previous session. Thereby, we will be neutral until the pair stabilizes with an obvious four hour closing below 61.8% Fibonacci level to make sure that the bearish scenario discussed in details in the weekly report will be resumed.
The trading range for today is among key support at 131.05 and key resistance at 137.30.
The general trend over short term basis is to the downside, targeting 118.80 as far as areas of 150.75 areas remain intact.
|Recommendation||Based on the charts and explanations above our opinion is, selling the pair with a breakout below-four hour closing below- 133.80 targeting 131.05 and stop loss above 135.60 might be appropriate.|