The support level around 0.8975 was sufficient to support the pair's positive momentum, where the pair is currently trading above the top of the suggested (X) point of the Butterfly harmonic structure, which could be completed at 0.9210, as this level represents the first potential reversal zone. Stochastic is within overbought areas, which could trigger heavy fluctuations and maybe downside corrections, but consolidation above 0.9030 should support our positive expectations to remain valid. The suggested harmonic pattern is bearish, therefore, we recommend observing the pair around 0.9210, where a breach of this level indicates that the upside move could extend to the second potential reversal zone, while in case the pair failed to breach this level, it could enter a downside correction.
The trading range for today is among the major support at 0.8850 and the major resistance at 0.9400.
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 buying the pair around 0.9030, and take profit at 0.9210 and stop loss below 0.8950 might be appropriate today.|