Technical Outlook and Chart Setup:
After reaching Fibonacci extensions at 1.5100 level, the single currency pair is consolidating at the moment. As you see from the above chart, we are at the 0.50 retracement level of the latest upswing from 1.4700 to 1.5400. There may still be some room left for the counter to drop down to a possible 0.618 retracement at 1.5000 level. But the risk of the reward ratio to go short now would not be favorable. We recommend remaining flat for now and watching out for a clear breakdown of recent lows to sell aggressively for a 100 pips gain towards 1.5000 level.
Trading Recommendations:
Stay flat for now. Aggressive traders can go short on a break of recent lows for a target of 1.5000.
Good Luck!