Technical outlook and chart setups:

The single currency pair is offering yet another opportunity to initiate short positions. The pair hit the first measured extension at 125.00 level yesterday and retraced back to 128.00 level. The next extension could be towards 123.00 level or even lower. Immediate chart resistance is 129.50, followed by 131.00, 132.00, and 134.00 on the higher side, while support is at 124.80 level, followed by 119.00 on the downside. It is hence recommended to remain short and also add on rallies towards 128.00 level. The structure may be unfolding in 5 waves towards 123.00; if that is the case, the pair would end significantly lower from current levels. Looking lower from here on.

Trading recommendations:

Remain short, stop is above 129.50, and target is at 123.00.

Good luck!