The pair is still trading within tight range between 50% and 38.2% Fibonacci correction as shown above, and also above the level of 1.3665, therefore the suggested Head and Shoulders structure was not completed yet. In addition, we recognize some negative signs, where the pair is trading below the simple moving averages 20 and 50, while Stochastic in negative which could support a breach of 1.3665. Stability below this level could support the downside movement to extend. We briefly expect the pair to turn negative today, but consolidation above 1.3840-80 negates our bearish expectations.
The trading range for today is among the major support at 1.3380 and the major resistance at 1.3990.
The short-term trend is to the upside with steady daily closing above 1.2795 targeting 1.5135.
**New York Candlesticks**
|Recommendation||Based on the charts and explanations above, we recommend selling the pair around 1.3780, and take profit in stages at (1.3665 and 1.3565) and stop loss with 4-hour closing above 1.3840 might be appropriate.|