After pattern that has formed recent week (on ) with candle patterns to signify weakness at that juncture.
For now we can see non-directional sideway trend that lasted for almost 1 month with some candles formation.
, and patterns at 122.752, 122.812 and 123.088 respectively at peaks of the upswing rallies.
With evidencing divergence to the previous uptrend on weekly charts is also an alarm to the bulls.
Hence, we see immediate support at 122.50 if it fails to hold these levels, 121.99 (23.6% fibo levels) is a certain event as it's been consistently spiking up all the way from 118.063.
In addition to that, we've also observed volumes were fading away on the basis of an order flow analysis.
We see the trend going in tight range between 123.75- 122.22 from last fortnight or so which we perceive this as non-directional but slightly downward bias since some signals for short term are popping up.
This has always been extremely tough & risky to have opened position in non-directional trend.
Since we are not disregarding dollar gains in long run but short term corrections are likely we like to remain in safe zone and recommend buying a strips using At-The-Money delta put contracts, thereby, one can benefit from certain returns even if the pair breaks out on either side in a long run.