We see in the above image that the trend is to the upside within a channel with a key support residing at the 100 SMA on the four hour charts at 1.3910 yet we believe that the pair is to decline this week to target the 38.2% correction at 1.3785 as technical indicators support the downside direction alongside the bearish technical pattern. The decline for the week remains as far as 1.4120 remains intact with targets at 1.4120 (the neckline for the technical pattern).
The trading range for the week is among the key support at 1.3440 and the key resistance at 1.4415
Support 1.3910 1.3840 1.3735 1.3675 1.3610
Resistance 1.3990 1.4120 1.4165 1.4240 1.4330
Recommendation According to our analysis, we believe the pair is to gather bearish momentum from 1.3840 with targets at 1.3785 and 1.3675 yet if trading reverses to maintain levels above 1.4120, our downside movements become invalid.
