Wave Analysis:
During the previous trading day, we saw a further correction of the impulsive wave (c) to the upper side but did not go beyond 1.2266. We expect this upward rally to be a phase of the corrective wave (b) that the current bearish price rally is the continuation of the impulsive wave (c) to the lower side and should break below 1.2203 towards 1.2032. This view can only be invalidated in case the price breaks above 1.2206, this being the case, we expect a possible momentum towards 1.2385. This pair should be traded alongside EURHKD, GBPUSD, and EURCHF. These pairs have a strong positive correlation and will move in the same direction today.
Trade Recommendations:
Remain short with your first target at 1.2203 and the next target at 1.2032
Origin: FreshForex
