Technical Outlook and Chart Setups:
The single currency pair rose past the 107.00 level threatening a break higher. At the moment it will be considered as a test and it is recommended to initiate short positions. The risk/reward ratio is good at the moment. Resistance is at 108.00 level, while intermediary support is at 105.20/30 levels followed by 104.00, 103.00, and 100.50. As it is depicted on the chart, at least 104.50 level should be expected in the short term; 108.00 should hold well.
Trading Recommendations:
Hold on to short positions taken earlier, build further short positions, move stop loss from 107.50 level to 108.00 (50 pips higher), and target is at 104.50.
Good Luck!
