Technical outlook and chart setups:

The single currency pair has taken out our stops below 121.00 level yesterday. Nevertheless, it seems to have found intermediary support at the 0.786 Fibonacci support as seen here. Furthermore, the intermediary support should be strong and hold well at 118.75-119.00 region. It is recommended to remain flat for now and watch for further movements before committing to trade the pair. Now intermediary resistance begins from 123.50 level, followed by 124.50, 126.00 and strong resistance is seen at 127.00/90 levels. If bulls are to remain in control, the 118.00/119.00 mark should hold well; also the break of channel line (smaller down trendline seen here), would confirm further. On the flip side, a breakdown of 119.00 level would see a huge correction seen towards 113.00/114.00 levels.

Trading recommendations:

Flat for now.

Good Luck!