Our first downside target which we predicted in the previous analysis has been hit. The pair is capped by a declining trend line since Jan. 8, which confirmed a bearish outlook. The 20-period moving average is playing a resistance role. The relative strength index is also capped by a descending trend line since Jan. 16.

To sum up, below 111.20, look for a further drop with targets at 110.45 and 110.00 in extension.

Alternatively, if the price moves in the opposite direction, a long position is recommended above 111.20 with a target of 111.45.

Chart Explanation: The black line shows the pivot point. The current price above the pivot point indicates a bullish position, while the price below the pivot point is a signal for a short position. The red lines show the support levels and the green line indicates the resistance level. These levels can be used to enter and exit trades.

Strategy: SELL, stop loss at 111.20, take profit at 110.45.

Resistance levels: 111.45, 111.75, and 112.05

Support levels: 110.45, 110.00, and 109.65.