Technical outlook and chart setups:
The currency pair is seen consolidating between 1.46-1.48 in a rising wedge format. Such consolidation patterns intend to break out north normally. It is recommended to hold on to remaining long positions for now, with an upside target around the 1.49 levels. Immediate support is seen between 1.4650 and 1.47, followed by 1.4560, 1.4380 and lower; while resistance is fixed at the 1.5 levels, respectively. The overall structure remains bearish, and the current rally from the 1.4 levels seems to be the retracement of the down leg between 1.54 and 1.4. Please note that the 1.49 level is the fibonacci 0.618 retracement and a bearish reaction is expected there.
Trading recommendations:
Hold long positions for now. Book profits at 1.49 and initiate fresh short positions.
Good luck!
