Technical outlook and chart setups:
The currency pair is preparing to give it all on the downside. As seen here the outer line was breached earlier and prices have tested resistance at 1.35 levels as well. It is recommended to initiate 50% short positions now (1.3440) and remaining on a spike towards 1.3550-1.3600 levels. Immediate resistance is at 1.3550, followed by 1.3800; while support is around 1.3100levels respectively. The overall structure seems to be unfolding that of a head and shoulder. Ideal right shoulder formation should be around 1.3600 levels and the downside extensions are 1.31 and lower. Short term rally should be used as an opportunity to initiate short positions.
Trading recommendations:
Sell 50% now and remaining around 1.3550-1.3600, stop is at 1.38, target is open.
Good luck!
