The pair declined to negate our expectations yesterday, but at the same time, the bearish Butterfly harmonic pattern, which settled for levels below 0.9420, could have been activated. Currently, any trading below 0.9420 drives us to expect an intraday downside movement, targeting primarily 0.8935 and then 0.8695, which represent 23.6% Fibonacci correction and the first extended target at 38.2% Fibonacci correction of the CD leg of the Butterfly pattern respectively.
The trading range for today is among the major support at 0.8695 and the major resistance at 0.9415.
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 below 0.9080, and take profit at 0.8935 and stop loss with 4-hour closing above 0.9185 might be appropriate today.|