Technical outlook and chart setups:

The single currency pair remains locked between a range between 126.00 and 130.00, bouncing off between Fibonacci ratios. The following trade strategies can be possible:

1. A downswing, that begun from 131.00 level, took support at 125.00 region (which is defined as past resistance turned support). This swing has been retraced to 130.50 level, which is the 0.786 Fibonacci resistance as well. The projected extension is at 123.00 level and it is recommended to remain short for now. Resistance is at 130.50 level and 131.00 on the higher side.

2. Prices have taken support at 125.00 level after printing highs at 131.00 level. A sequence of higher highs and higher lows has been forming since then and a push through 130.50 level will pretty much confirm that the pair is moving towards a new high. Turning bullish now is not recommended, only above 130.50 level.

Trading recommendations:

Remain short for now, stop is above 130.50/60, and target is open.

Good luck!