Estimated pivot point is at the level of 110.57
Our opinion: Sell the pair from correction below the level of 110.57 with the target of 108.90 – 108.00. In case of breakout of the level of 110.57, buy with the target of 112.50.
Alternative scenario: Breakout and consolidation of the price above the level of 110.57 will trigger the rise up to 112.50.
Analysis: Presumably, the formation of the upward correction as the fourth wave of the senior level continues. At the moment, it is likely that the formation of the wave (a) of iv has completed. In this wave, the impetus has been formed and the local correction is being developed as the wave (b), which seems to take a shape of a plane. If this assumption is correct, the pair will continue to decline to 108.90 – 108.00.Critical level for this scenario is 110.57. Breakout of this level will trigger the rise in the pair up to 112.50.