The pair breached the first target of the CD leg of the bearish Butterfly harmonic pattern, where according to harmonic rules, a breach of this level at 0.8695 suggests that the downside movement could extend towards the second target, which represents 61.8% Fibonacci correction at 0.8310. But, 50% Fibonacci correction at 0.8505 represents a technical barrier facing the pair. Momentum indicators are within oversold areas, which could trigger heavy fluctuations and maybe upside corrections, but we expect the downside movement to extend today.
The trading range for today is among the major support at 0.8310 and the major resistance at 0.8930.
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 0.8675, and take profit at 0.8505 and stop loss above 0.8780 might be appropriate today|