Our first downside target which we predicted in yesterday's analysis has been hit. The pair is under pressure below the key resistance at 113.40. The relative strength index is below its neutrality level at 50 and lacks upward momentum. To conclude, as long as 113.40 isn't surpassed, look for a further drop to 112.40. A break below of this level would trigger another decline to 112.05.
Alternatively, if the price moves in the opposite direction, a long position is recommended above 113.40 with a target of 113.65.
Chart Explanation: The black line shows the pivot point. The current price above the pivot point indicates a bullish position, while the price below the pivot point is a signal for a short position. The red lines show the support levels and the green line indicates the resistance level. These levels can be used to enter and exit trades.
Strategy: SELL, Stop Loss: 113.40, Take Profit: 112.40
Resistance levels: 113.65, 113.85 and 114.10 Support Levels: 112.40, 112.05, 111.70
