Medium term trend: Up
Significant levels: Significant Round Number (110.00), Horizontal Support (105.30), Horizontal Resistance (108.40),
After the price reached the 110.00 Significant Round Number (Psychological level), the market declined. This is because the market thought that the strength of the USD is so strong that it is overvalued. Yesterday's large down move is caused by the weak data from the US making the price to decline more.
This news is not negative, but a positive one. We are still with this currency pair. Therefore, when the price goes down, we buy. Of course, we need to look for the right time and place to place our trade. As you can see in the chart, the support was respected by the market in the yesterday's move. The price rejected the support line, move up, but not that strong (up), and closes above that support. As of writing, the market does not move much. We could see the market stay above this level for now. Therefore, we need to look for a signal, then trade that.
And though the support line was respected by the market, we still need to look for a trade setup that would give us a high probability of winning. Anything can happen in the market so a very nice opportunity wouldn't hurt so much. Just be patient. Yesterday's bar is a Large Bearish so you don't want to get caught if the market continues to go down now or maybe later. And as of now, there is not much move in the market. No sign of bullishness. We could place a long trade if we could see a strong rejection of the support level. As of now, nothing of that.