Technical outlook and chart setups:
The currency pair has bounced off again, after pulling back towards the 1.4550 levels recently, as expected and discussed. It is still recommended to hold the remaining long positions and reduce risk to the 1.4550 levels. Intermediary support is at 1.4550, followed by 1.4400, then 1.4200, 1.4075 and lower; while resistance is at 1.48, followed by 1.5 and higher. The extensions are pointing towards 1.4920/30 from here on. Also the fibonacci 0.618 retracement of the entire fall from the 1.54 to 1.4 levels is pointing towards 1.49. We would wait for a bearish reaction to materialize around the 1.49 area and look to initiate short positions there.
Trading recommendations:
Hold on to long positions, stop is at 1.45, target is at 1.49.
Good luck!
