Technical outlook and chart setups:
The single currency pair has broken immediate line of support last week. Furthermore, it has tested resistance at 132.00 level as well. The current rally from 129.50 to 131.40/50 can still be defined as retracement of earlier fall; and an opportunity to initiate further short positions. It is recommended to remain short on earlier positions taken as well; minimum downside extensions seen towards 127.50 for now. Immediate resistance is 132.00 level, followed by 134.00 on the higher side; while immediate support is seen at 129.00, followed by 127.00 respectively. 132.00 remains key for bears to remain in control for now.
Trading recommendations:
Remain short, stop is at 133.50, and target is at 127.50.
Good luck!
