The descending channel shown in blue supports the negative effect of the bearish Butterfly harmonic pattern. In addition, this channel contains the Exponential Moving Average 50, which coincides the 23.6% Fibonacci correction of the CD leg of the pattern at 0.8930. Consolidation below the mentioned level suggests a downside movement towards 38.2% Fibonacci correction of the CD leg at 0.8695, the pattern's first target. Stochastic is within oversold areas, which could trigger heavy fluctuations.
The trading range for today is among the major support at 0.8505 and the major resistance at 0.9185.
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 0.8850, and take profit at 0.8695 and stop loss above 0.8930 might be appropriate today|