The daily chart is showing a strong bullish run that’s been in play for a number of weeks. There is a clear prior swing point at the 114.33 which is likely to attract buy stop orders and is a perfect place to look for false breaks.
The current daily close has given us exactly that with a clear break above the key swig point and close back beneath it. Long traders will now be trapped and if forced to liquidate positions will see price propel to the down side.
The hourly chart has clear MACD divergence across the recent highs and price has now closed beneath the 50EMA. We will look for a retrace to the pivot point which will coincide with a retest of the EMA. If we see a clear price action setup then we will initiate a short trade with a stop above R1 and a target at S1.