We can see on the weekly chart a harmony between Fibonacci retracements that is forming some kind of a harmonic structure. The harmonic structure is close to the Deep Crab pattern, but in fact, the potential reversal zone extended more than 161.8% of the XA leg to reach 200%, meaning that our pattern isn't ideal. Momentum indicators are within overbought areas, whichforce usto look for the potential reversal zone-PRZ- at 0.6980, where as we can see, this point represents 261.8% Fibonacci correction of the BC leg and 200% Fibonacci correction of the XA leg. But, the pair is currently trading far from these levels; in addition the pattern wasn't confirmed yet. Therefore, we will hold onto our neutrality today, waiting formore confirmations regarding the pair's behavior around the mentioned level.
The trading range for today is among the major support at 0.6980 and the major resistance at 0.7920.
We need more confirmations regarding the pair's short-term movement, waiting to observe the pair's behavior around 0.7665 until closing this week.
|Recommendation||Neutrality is our recommendation, while we recommend observing the pair’s movement for more confirmations.|