Technical outlook and chart setups:
The currency pair is producing an engulfing bearish candle stick formation at current levels, after printing intraday highs at 135.50 yesterday. It is indicative of next move lower from here on. We would either like to go long after a retracement, around 132.20; or to initiate short positions upon a trend line break. Initial support begins from 131.00, followed by 128.00, and then 125.00; while resistance is at the 135.50 area (intermediary). Please note that till the time prices remain above the 131.00 levels, they are heading higher towards 136.00 and above. Only a break of trendline and subsequent 131.00 would give control back to bears.
Trading recommendations:
Remain flat for now.
Good luck!
