Technical outlook and chart setups:
As it had been discussed since few last trading sessions and depicted here on the 4H chart view, the single currency pair has hit our first measured soft target below 1.4050 level right now. It is suggested to book profits and review the situation before entering again. As shown here, the 1.4040/50 level is re-enforced by the 0.618 Fibonacci support level of the upswing between 1.4 and 1.4280. Hence it is quite possible for the pair to take a bullish bounce from these levels in the coming hours. In that case one can expect a rally that would complete trade cycle/counter trend cycle that began from 1.4 level. The next lined up resistance is around 1.4350 level; while support is at 1.4030/35 and lower. On the other hand, if prices break below 1.4030 level, it would be safe to assume that it is heading lower further towards 1.38/1.37 levels.
Trading recommendations:
Book profits on short positions. Flat for now. Look to buy on a bullish reversal from here, target is at 1.45.
Good Luck!
