Broken out of the triangle formation to the downside. Continued downward momentum from 137.79 resulted in the pair posting net daily losses yesterday. Negative overnight flows lead to an expectation of a weaker open this morning. We look for a re-test of the upward trending resistance. Further downside is expected although we prefer to set shorts at our bespoke resistance levels at 136.25, resulting in improved risk/reward.
We look to Sell at 136.25 Stop: 136.65 Target 1: 135.20 Target 2: 134.50
It’s a US holiday today so expect quieter markets today.