The sharp incline seen yesterday supported the pair to test 78.6% Fibonacci correction of the bearish wave as shown above, where the bullish rebound negated the bearish butterfly harmonic pattern mentioned yesterday, which drove us to remain neutral in the past session. Currently, the pair is trading around the main resistance of the ascending channel, while momentum indicators are within overbought areas, which could trigger a downside correction before resuming the general upside trend, which is expected to extend further.
The trading range for today is among the major support at 1.3850 and the major resistance at 1.4390.
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 1.4140, and take profit in stages at (1.4250 and 1.4390) and stop loss below 1.4000 might be appropriate.|