The pair reached the first target for the harmonic pattern at 38.2% of CD as shown above. Momentum indicators are overbought and Stochastic provided a negative crossover which might pressure the pair to the downside. Yet, we do not rule out the possibility of more bullishness after the end of the downside correction as the pair moves higher towards the second harmonic target at 61.8% correction at 0.8505.
The trading range for today is among the key support at 0.8210 and key resistance now at 0.8550.
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 0.8370 targeting 0.8505 and stop loss below 0.8295 might be appropriate|