2016-10-28 15:30:51

Estimated pivot point is at the level of 1.0880.

Our opinion: Buy the pair from correction above the level of 1.0880 with the target of 1.1036. In case of breakdown of the level of 1.0880, sell with the target of 1.0770.

Alternative scenario: Breakout and consolidation of the price below the level of 1.0880 may trigger further decline in the pair to 1.0770.

Analysis: Presumably, the formation of the wave c of 2 continues as the bearish correction of the senior level. Locally it is likely that the third wave (iii) has completed and the correction as the fourth wave (iv) is being developed. If this assumption is correct, the pair may continue to rise up to 1.0830 – 1.0770. Critical level for this scenario is 1.0880.