Yesterday, the upside move was expected, as we expected the pair to reach 1.4150-70 before reversing to the downside again. Stochastic over daily basis is still biased negatively as shown on the chart above, while the pair approached the retest of the mentioned resistance. Consolidation below 1.4205 is required for our negative expectations to remain valid, as the pair forms the CD leg of the proposed butterfly pattern as shown above.
The trading range for today is among the major support at 1.3910 and the major resistance at 1.4325.
The short-term trend is to the upside with steady daily closing above 1.2795 targeting 1.5135.
|Recommendation||Based on the charts and explanations above we recommend selling the pair around 1.4150 and take profit in stages at (1.4085, 1.4040, and 1.3970) and stop loss with four-hour closing above 1.4270 might be appropriate|