2016-08-12 17:43:40

Estimated pivot point is at the level of 1.3096.

Our opinion: Sell the pair from correction below the level of 1.3096 with the target of 1.25 – 1.2250.

Alternative scenario: Breakout and consolidation of the price above the level of 1.3096 may trigger further rise up to 1.3215.

Analysis: Presumably, the formation of the upward correction, as the wave 2 has completed. Locally, it is likely that the third wave of the senior level is being formed, within which the third wave of the junior level iii of 3 is being developed. If this assumption is correct the pair can continue to decline to 1.25 – 1.2250. Critical level for this scenario is 1.3096. Breakout of this level will trigger upward correction in the pair to 1.3215.