We recognize a possible formation of a bearish Butterfly harmonic pattern (shown aboveto the right), where the pattern's first Potential Reversal Zone -PRZ-resides at 1.4000, which also represents the last extended target of the bullish Crab harmonic pattern mentioned in our previous reports (shown on the left image). We expect the upside move to extend, proving the validity of the suggested Butterfly pattern and achieving the last extended target of the bullish Crab pattern; however, we recommend paying attention once the pair reaches areas around 1.4000, where these levels could trigger a downside correction.
The trading range for today is among the major support at 1.3720 and the major resistance at 1.4150.
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 1.3880, and take profit at 1.4010 and stop loss below 1.3820 might be appropriate.|