2016-11-11 16:52:49

Estimated pivot point is at the level of 1.0848.

Our opinion: Buy the pair from correction above the level of 1.0848 with the target of 1.1274 – 1.14.

Alternative scenario: Breakout and consolidation of the price below the level of 1.0848 may trigger further decline to 1.0770.

Analysis: Based on the wave pattern we can assume that the large downward correction as the wave 2 of the senior level has completed. Locally it is likely that the third wave 3 is being formed, within which the downward correction of the junior level as the wave (ii) is nearing completion. If this assumption is correct, the rise in the pair is likely to continue in the third wave (iii) up to the levels of 1.1274 – 1.1450. Critical level for this scenario is 1.0848.