Wave Analysis:As anticipated, the US Dollar dropped more than 100pips as previously forecasted and is still pretty much bearish both on the 4H and the daily charts. Following the breakout below 113.68, we expect further acceleration to the lower side but should not go beyond 111.90. In the meantime, we’re waiting for minor pullbacks to the just broken support level 113.68 to continue short with our ultimate target at 111.90. Expect a similar wave count in USDCHF, AUDJPY, CADJPY and NZDJPY. These pairs have a strong positive correlation of up to +89% and will move in the same direction during this intraday. Only buy or sell the US Dollar if the other positively correlated pairs are giving the same signal.
Trade Recommendations:
If you’re not short already, wait for minor bullish pullbacks towards 113.68 to go short with an ideal target at 111.90
Origin: FreshForex
