Wave Analysis:
As anticipated, the pair traded massively short during the previous trading day and ended up breaking below the rising channel with a big red candle. As long as the pair remains below the lower trend line forming bottom of the rising channel, we expect a possible bearish wave count towards 1.1530 or even lower. Ideally, we expect the level 1.2689 to have marked the end of the corrective wave (b) and that the current downward rally is the continuation of the impulsive wave (c) to the lower side. This view can only be invalidated in case the pair end up breaching the level 1.2401, if this is the case, then an acceleration to the upper side is inevitable. This Expect a similar wave count in EURUSD, NZD/USD, AUD/USD and and exact opposite wave count in USDJPY and USD/CHF.
Trade Recommendations:
Remain short with the first target at 1.1530
Origin: FreshForex
