The pair rebounded sharply after reaching 0.9780 yesterday, to approach all of our targets, suggested in our weekly report. Now, momentum indicators are within overbought areas, while the pair is close to the psychological barrier of 1.0000 in addition to approaching a technical barrier at 1.0010, which represents 161.8% Fibonacci correction of the CD leg of the bullish AB=CD harmonic pattern. These signals drive us to expect a downside correction for today, while stability with 4-hour closing below 1.0010 should keep our expectations valid. More explanations and reasons beyond the expected downside move will be delivered through our Midday Report
The trading range for today is among the major support at 0.9735 and the major resistance at 1.0160.
The short-term trend is to the downside as far as 1.0665 remains intact targeting 0.9000.
|Recommendation||Based on the charts and explanations above our opinion is selling the pair around 0.9950 and take profit in stages at (0.9880, 0.9780) and stop loss with 4-hor closing above 0.1.0010 might be appropriate.|