The recently established uptrend line from C point provided the royal pair with the support it needed to move upwards once more as seen on the provided four hour chart. Therefore the probability of forming the CD leg of the proposed harmonic butterfly formation remains intact since 38.2% Fibonacci of XA also succeeded in providing the pair with an upside momentum. To summarize, the bullishness is still in favor and only a break of 0.8340 can damage this temporal positive scenario. Stochastic is presently positive, adding further confirmation for the bullishness.
The trading range for today is among the key support at 0.8355 and key resistance now at 0.8605.
The general trend over short term basis is to the downside, targeting 0.7780 as far as areas of0.8965remain intact.
|Recommendation||Based on the charts and explanations above our opinion is, buying the pair around 0.8560 targeting 0.8700 and stop loss below 0.8570 might be appropriate.|