Wave Analysis:
After an incessant upward movements, the impulsive wave (v) barely hit the highs of 1.1899 before pulling back to the lower side. We expect the downward rally that began few weeks ago to be a corrective wave count seeking to current the immediate five wave cycle. We expect this bearish correction not to go below 1.16127, however, if this level is broken, then this pair could fall further with the next target at 1.1335. This pair should be traded alongside EURHKD, GBPUSD and USDJPY, USDCHF. The last two pairs have a strong negative correlation to the first two pairs and will move in opposite price action.
Trade Recommendations:
Expect a possible bearish correction towards 1.16127.
Origin: FreshForex
