The pair declined after reaching around 0.8920 and stabilized below 0.8850, which suggests the completion of the Butterfly harmonic structure. Consolidation below these levels suggests a test of the first target of the harmonic structure at 0.8460 at least, but we should pay attention to the technical barrier at 0.8640. These suggested levels represent 38.2% and 23.6% Fibonacci correction respectively. Stability above 0.8920 weakens the possibility of the downside movement.
The trading range for today is among the major support at 0.8540 and the major resistance at 0.9105.
The short-term trend is to the upside with steady weekly closing above 0.8020 targeting 0.9400.
|Recommendation||Based on the chart and explanations above, we recommend selling the pair around 0.8820, and take profit in stages at (0.8640 and 0.8540) and stop loss with 4-hour closing above 0.8950 might be appropriate today.|