The royal pair is trapped within a tight range between the support of 0.8460 and 0.8500 resistance as seen on the provided four hour chart but it is clear that SMA 50 provides it with the support it needs, carrying the bullish wave from below. Additionally, it stabilized above 50% Fibonacci of XA leg for our suggested harmonic butterfly pattern. Once it breaches 61.8% of XA leg at 0.8505 the door will be opened for resuming the CD leg of this harmonic pattern. In result, we hold onto our positive anticipations over intraday basis as far as 0.8380-0.8370 areas remain unbroken.
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 0.8475 targeting 0.8600 and stop loss below 0.8380 might be appropriate.|