Technical outlook and chart setups:
The single currency pair rose to the 129.60/70 mark yesterday. As depicted on the 4H chart view here, this region is also re-enforced by the Fibonacci 0.786 resistance level. It is suggested to book profits on long positions taken earlier at current levels (129.30), and initiate short positions. The pair could form an up Gartley falling down towards 123.50 level before rallying further up. Please note that 123.50 is the 0.618 support of the entire rally from 119.00 to 130.00. As seen here, major support now is the 119.00 level, followed by 117.00, 116.00, and lower, while resistance is at 131.00. Bottom line: Looking lower at least in the short term; but it has got potential to trigger further downside.
Trading recommendations:
Book profits on long positions. Initiate short positions, stop is at 131.00, and target is at 123.5.
Good luck!
