Despite the fact that the CD leg of the butterfly pattern is not ideal, still the harmonic formation generally fulfils the required Fibonacci corrections and that is why we believe that the formation is valid and it is a bullish formation suggesting further upside movement for the pair. This formation might carry the pair to test areas around 1.0100 and stability above this level will push the pair to test areas around 1.0170-1.0185; our bullish intraday expectations require steady trading above 0.9960 areas.
The trading range for today is among the major support at 0.9865 and the major resistance at 1.0205.
The short-term trend is to the downside as far as 1.0665 remains intact targeting 0.9000.
*The chart above is based on NY time*
|Recommendation||Based on the charts and explanations above we recommend buying the pair above 1.0010 targeting 1.0100 and 1.0180 and stop loss with four-hour closing below 0.9940 might be appropriate|