After breaching the consolidation pattern, went to the highs of 123.75 levels without any considerable struggle.
But for now a resembling pattern has formed at peaks with candle patterns to signify weakness at this juncture.
We can now see non-directional trend like previous sideway trend that lasted for almost 1 month.
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.
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 it should not damage the dollar gains in long run but short term corrections are likely we like to remain in safe zone and recommend buying a straddles 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.