Technical outlook and chart setups:
The single currency pair is clearly providing a range trading opportunity within the triangle formation shown here on chart view. It is recommended to book profits on short positions initiated yesterday from around 129.30/40 levels; and initiate long positions now (128.50/55) region. A clearance of 129.10/20 levels now, would take prices to fresh highs above 131.00, while a break of 127.00 level would bring down prices to retest 125.00 and probably towards 123.50 levels, which is the Fibonacci 0.618 support of the entire rally from 119.00 to 131.00 recently. Immediate support within the triangle is 126.50 and 125.00 on the lower side, while resistance is 129.70, followed by 131.00 level. Trading the range is recommended strategy for now.
Trading recommendations:
Book profits on short positions from yesterday. Go long now, stop is below 126.00, and target is open.
Good luck!
