Recently, the pair has been showing volatility as after the breakout of the neckline showed in our previous reports around 0.8605, Fibonacci 38.2% correctional level halted the short-term downside trend which took the pair to the upside buoyed by the formation of a minor bullish technical pattern appearing on the short-term basis.
We see that the last upside wave is among an upside correction to the fall which started from the second top of the major bearish technical pattern.
This peak is at 0.9387, as indicated by the chart, while it stopped its rise at 61.8% Fibonacci. Momentum indicators are showing a downside trend while the stability of the pair is below MA 50.
These factors suggest that, the pair will continue its downside trend that stopped at 38.2% Fibonacci to continue the upside trend that started at 0.6007, as referred previously.
Thus, the first task is to breach 0.8605 to open the way for targets that is predicted to start at 0.8105, taking into consideration that the breakout of 0.8865 will fail the expected downside trend scenario
