Normal downside recovery occurred due to facing 100% or rather the full correctional Fibonacci level of XA leg of the suggested harmonic butterfly pattern. Now, the pair is retesting the uptrend line that carries the CD leg of this harmonic formation, while being carried by SMA 50-colored in red-. In the interim, Stochastic is overlapping positively inside oversold areas and therefore, we believe that the royal pair is gathering the momentum it needs to resume its projected bullishness over intraday basis and to complete the harmonic formation. Note that, areas of 0.8440 should hold to keep this structure valid.
The trading range for today is among the key support at 0.8390 and key resistance now at 0.8630.
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 with a breakout above 0.8530 targeting 0.8660 and stop loss below 0.8440 might be appropriate.|