2016-09-02 17:20:37

Estimated pivot point is at a level of 1.1118.

Our opinion: In the short term, buy the pair from corrections below a level of 1.1118 with a target at 1.1220 – 1.1250. In the medium term: wait for completion of correction and sell the pair below a level of 1.1360 with a target at 1.0930.

Alternative scenario: Breakout and consolidation below the level of 1.1118 will allow the pair to continue declining to the levels of 1.0930 - 1.08.

Analysis: Supposedly, a downward correction of senior level continues to form with a wave c of 2 developing within. Apparently, the first counter-trend wedge-shaped wave (i) has formed locally and an upward correction is forming as a wave (ii). If the presumption is correct, after correction, the pair will continue falling to the levels 1.0930 – 1.08.