On the 4-hour chart the price was corrected from the area of 2-year highs (1.1910) to the area of 1.1720 (correction 23.6%) and now is trying to grow to the middle line of Bollinger Bands (1.1835). If the price is set above this level, it can grow to the level of 1.1900. The breakdown of the level of 1.1720 (correction 23.6%) will let the pair to fall to the levels of 1.1610 (correction 38.2%) and 1.1515 (correction 50.0%).
On the daily chart the price is testing the level of 1.1760 (correction 23.6% for the short term trend). According to the technical indicators’ readings (Stochastic is pointed downwards, MACD histogram is decreasing in the positive zone), the development of the downward correction after the breakdown of the level of 1.1760 is possible. The “bearish” targets will become the levels of 1.1640 (the middle line of Bollinger Bands) and 1.1540 (correction 23.6%).
Generally, short positions can be opened after the consolidation of the price below Fibonacci correction 38.2% (D1) at the area of 1.1720 with the targets at 1.1610 and 1.1540. Stop loss is around 1.1780.
Short termed long positions will become relevant after the price is set above the level of 1.1835 with the target at 1.1900, but in case of the significant consolidation above the level of 1.1900 the volume of long positions can be increased with the long term target at the level of 1.2170. Stop loss is around 1.1790.
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