The downside move stopped before reaching 61.8% Fibonacci correction of the crab harmonic pattern's CD leg at 1.4215, which represents the second target of the harmonic structure and currently the pair returned to trade around 38.2% Fibonacci correction at 1.4335, which is the first harmonictarget. Harmonic studies indicate that consolidation below the first target suggests a retest of the second one, while 50% Fibonacci correction acts as a minor support that stopped the downside move. We still think that the pair may extend the downside movement, but requires consolidation with 4-hour closing below 1.4415.
The trading range for today is among the major support at 1.4125 and the major resistance at 1.4535
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 1.4375 and take profit in stages at (1.4335, 1.4275 and 1.4215) and stop loss with 4-hour closing above 1.4470 might be appropriate today.|