Last week`s steep drop remained confined in areas above 116.15, preserving possibilities for new bullish attempts all the way to 122.15, which represents 161.8% Fibonacci as shown on the graph. Linear Regression Indicators are positive and support our forecasts, and despite overbought signals reflected by Stochastic, trading above 117.50 help us ignore these signs.
The trading range for this week is between the key support at 117.50 and the key resistance at 123.00.
The short-term trend is to the upside targeting 122.15 as far as 111.40 remains intact at week`s closing.
Support 119.25 118.80 118.40 118.00 117.50
Resistance 120.00 120.35 121.00 121.50 122.15
Recommendation Based on the graph and explanation above, our opinion is buying the pair above 119.25 targeting 120.80, 121.50 and 122.15 and stop-loss with four-hour closing below 118.00 is appropriate this week