Despite the sharp decline seen yesterday, we haven't seen any 4-hour closing below 23.6% Fibonacci correction of the CD leg of the bullish harmonic Bat pattern at 1.4150, where this correctional levelforced the pair to reboundabove 38.2% Fibonacci of the CD leg at 1.4205. Trading above the harmonic structure's first target at38.2% Fibonacci correctional level, suggests a retest of the second target, which represents 61.8% Fibonacciretracement at 1.4300. Therefore, we expect the upside movement to return today. Stability above 1.4150 is necessary for our expectations to remain valid.
The trading range for today is among the major support at 1.4035 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 1.4230 and take profit in stages at (1.4300 and 1.4410) and stop loss with 4-hour closing below 1.4150 might be appropriate.|