The pair has made a dead cat bounce yesterday after PBOC cuts interest rates by 50 bpbs and with additional cuts for individual sectors.But It is still struggling to hold above 120 level.
Any further weakness can be seen only below 118 level. Any break below 118 will drag the pair further down till 117/116 in short term.
The pair is facing short term resistance around and any indicative break above would extend gains till 121/121.60.
It is good to buy at dips around 118.50 with SL around 117.90 for the TP of 120/120.40