As shown upon the chart, the bullish harmonic structure was able to stop the downside correction, which was expected this week. Currently, the pair approaches the pattern's first target, while we suggest an upside move to reach this target, which represents 38.2% Fibonacci correction of the CD leg of the harmonic structure at 0.8855. However, high risk-to-return ratio is associated with our expectations and heavy fluctuations are expected today. ADX attempts to enter an ascending channel on the medium and long-term timeframes.
The trading range for today is among the major support at 0.8020 and the major resistance at 0.8920.
The short-term trend is to the upside with steady weekly closing above 0.6980 targeting 0.8815.
|Recommendation||Based on the chart and explanations above, we recommend buying the pair above 0.8350, and take profit in stages at (0.8550 and 0.8855) and stop loss with 4-hour closing below 0.8170 might be appropriate today.|