The pair climbed in response to our previous expectation however now it is dropping to near the 106.25 level again, as showing on the chart above. The Relative Strength Index (RSI) shows dowside bias continuation but Stochastic enters oversold areas. Therefore, we stand neutral in our weekly report , especially as the pair hovers around critical levels; these levels could be the potential end of "CD" leg of the 0-5 Harmonic Pattern, however, we might a bullish extention to the leg and determine the intraday direction at 106.25 level.
The trading range expected this week is between the key support at 104.60 and the key resistance 109.15.
The short-term trend is to the upside targeting 109.15 as far as 98.75 remains intact at week`s closing.
Support 106.25 105.75 105.15 104.60 104.10
Resistance 106.75 107.00 107.25 108.30 108.80
Recommendation Based on the chart above, we remain neutral in our weekly report.