Our downside target which we predicted in our previous targets has been hit. Although the pair posted a rebound from 111.50 (the low of July 19), it is still trading below the declining 50-period moving average, which plays a resistance role. The relative strength index is mixed with a bearish bias. The upward potential is likely to be limited by the resistance at 112.40.

Hence, as long as this key level is not surpassed, look for a further decline to 111.20 and even to 110.95 in extension.

Alternatively, if the price moves in the opposite direction than predicted, a long position is recommended above 112.40 with a target at 112.85.

Chart Explanation: The black line shows the pivot point. The current price above the pivot point indicates a bullish position while the price below the pivot point is a sign for a short position. The red lines show the support levels and the green line indicates the resistance level. These levels can be used to enter and exit trades.

Strategy: SELL, Stop Loss: 112.55, Take Profit: 111.50

Resistance levels: 112.85, 113.15, and 113.50 Support Levels: 111.20, 110.95, 110.50