Last week the pair had an overall bullish
mood and reached above to test the Monthly R1 Point at 107.49. This zone represents a resistance zone
and as expected price could not break above it on the daily chart
, this way forming a nice bearish shooting star
candle. We expect for this week now a change in direction, anticipating that the Monthly R1 will hold and we will have a new bearish
run downwards on the chart. We will look for some short positioning on this market in case the price retests again the area at 107.49. Our view on the pair direction will be proven invalid if price manages to break and close above the 107.49 area.