Technical outlook and chart setups:
As depicted here, the currency pair has broken the intermediary support line earlier and is now testing the back side of the same trend line (acting as resistance now) around 130.30/131.00 levels. This congestion is also the 0.618 Fibonacci resistance of the drop from sub 134.00 levels to 125.00. A probable head and shoulder reversal setup is being carved out at the moment and if this holds true, prices are seen heading towards 119.00 levels at least. It is therefore recommended to remain short and also add further positions with a downside target. Resistance levels are the 132.00 and 133.00 regions while support is not seen till 119.00 levels. The structure if worked out well, should produce a steep fall.
Trade recommendations:
Remain short, stop at 133.00, target 119.00
Good luck!
