Technical outlook and chart setups:
If we consider the entire fall from 1.4480 level to 1.4075 recently, the single currency pair seems to be testing the Fibonacci 0.618 resistance at 1.4310/20 as depicted on the 4H chart view here. A bearish reversal here shall resume downswing towards 1.4 and lower. Immediate resistance is the 1.4350/60 level, followed by 1.44 and then 1.4480, while support remain intact at 1.4030 and 1.4 respectively. Furthermore, the recent sloping line of resistance is also passing through the 1.4350 region at the moment. Keeping these facts into consideration, it is safe to remain short on positions taken earlier and also possibly initiate fresh short positions at current levels. Bottom line: Looking lower till prices remain below 1.4530.
Trading recommendations:
Remain short, stop is at 1.4400 (from 1.4350), and target is below 1.4.
Good luck!
