2016-07-29 17:34:41

Estimated pivot point is at the level of 1.3055.

Our opinion: Buy the pair from correction above the level of 1.3055 with the target of 1.3640 - 1.3880.

Alternative scenario: Breakout and consolidation of the price below the level of 1.3055 may trigger further decline to 1.2780.

Analysis:Presumably, the formation of the upward correction, as the wave 2, continues. Locally, it is likely that the wave (c) of 2 is being formed, within which the first wave of the junior level i of (c) seems to develop. If this assumption is correct, the pair may continue to rise up to 1.3640 – 1.3880. Critical level for this scenario is 1.3055. Breakout of this level will trigger further decline in the pair.