The pair is still biased to the downside, where the bullish attempt yesterday failed due to the effect of the bearish Butterfly harmonic pattern, which forces downside pressures on the pair to move towards the first target of the pattern, which represents 38.2% Fibonacci correction of the CD leg. We expect the downside movement to extend today towards the mentioned correction at 0.8695, while Stochastic provides a negative crossover, which also supports our negative expectations. Therefore, due to the proximity to the suggested target, and the high risks associated with our expectations, we prefer to remain neutral today.
The trading range for today is among the major support at 0.8505 and the major resistance at 0.9080.
The short-term trend is to the upside with steady weekly closing above 0.8020 targeting 0.9400.
|Recommendation||Based on the charts and explanations above we remain neutral awaiting more confirmations|