On the daily chart, the pair is trading in the lower Bollinger band. The price remains below its moving averages that turned down. The RSI is falling towards its beginning of February support. The Composite, however, is horizontal.
On the 4-hour chart, the pair is falling along the lower MA of Bollinger Bands. The price remains below its moving averages that are directed down. The RSI is about to test its most recent support level. The Composite turned up to retest its longer MA. Both indicators start forming a divergence with the price.
Support levels: 111.58 (local lows), 110.85 (February lows), 107.75 (October 2014 lows).
Resistance levels: 113.37 (local highs), 114.00 (active trade), 114.87 (February highs).
Short positions can be opened from the level of 110.80 with the target at 107.95 and stop-loss at 111.50. Validity – 3-4 days.
Long positions can be opened from the level of 113.40 with the target at 114.00 and stop-loss at 113.19. Validity – 1-2 days.