The bullish AB=CD pattern failed to achieve further extended targets, and returned to decline sharply reviving the possibility of the bearish bat harmonic pattern used before, the pair is currently trading between the first extended target of 78.6% Fibonacci correction of the CD leg, and 88.6% Fibonacci correction of the leg at 1.4070. Trading below the first extended target suggests a retestofC pointat 1.4010, but the pair failed to breach 88.6% Fibonacci correction. We can see another bullish harmonic pattern, which is an ideal bullish Three-Drive pattern and supports not breaching 88.6% Fibonacci correction.RSI and Stochastic could turn positive, in addition to another bullish harmonic pattern -which will be discussed in our Midday report-. Therefore, we also expect an upside move for today, but stability below 1.4010 shouldn't be seen for our expectations to be confirmed.
The trading range for today is among the major support at 1.3870 and the major resistance at 1.4415
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 buying the pair around 1.4100 and take profit in stages at 1.4215 1.4335 and 1.4385, and stop with 4-hour closing below 1.4015 might be appropriate, but in case stop loss point was reached our opinion is selling the pair around 1.4015 and take profit in stages at 1.3910 and 1.3880 and stop loss with 4-hour closing above 1.4125 might be appropriate.|