Technical outlook and chart setups:
The currency pair reversed sharply from the 1.4900 levels last week as expected and also took out the immediate support in the 1.4550/60 area as depicted here. It is quite possible that the pair rallies from here on towards the 1.4800 levels, before continuing to drift lower further. Resistance is the 1.4800/20 level, followed by 1.4900 levels; while support levels are spread through 1.4350/1.44, followed by 1.4200 and lower respectively. Aggressive trade setup would be to go long now for a 250-300 pip rally towards 1.4800 levels and then reverse positions. The entire structure has begun to show signs of a huge reversal and a break of the lower support trend line would confirm the same.
Trading recommendations:
Conservative: Sell at 1.4800, set stop at 1.4950
Aggressive: Buy now, set stop at 1.4550, target is at 1.48.
Good luck!
