Wave Analysis:
Despite the bearish pin bar candle witnessed on Feb 2nd 2017, on the daily chart, the price merely tested the lower trendline forming bottom of the rising channel and ended up forming an opposite bullish pin bar. Since the current chart set up and structure is pretty much bullish, we choose to hold onto a bullish bias sentiment on this pair, we’re are waiting for a clear breakout above 1.0795 to confirm the continuation of the anticipated upward rally towards 1.1064. This view can only be rendred futile in case the pair end up below the lower trendline, if this is the case, then an accelaration to the lowerside is inevitable. Expect a similar wave count in NZDUSD, GBPUSD and AUDUSD. These pairs have a strong positive correlation of up to +85% and will have a similar price action during this intraday.
Trade Recommedations:
If you are not long already wait for a clear breakout above 1.0795 to go long with an ideal target at 1.1064.
Origin: FreshForex
