Extended correction | 30 Mei 2017

Wave Analysis:

Instead of halting around 1.1176, the corrective wave (iv) extended a bit lower than expect but should not break below 1.1103. We expect a possible rebound from 1.1103 to buy the impulsive wave (v) towards the weekly resistance level 1.1398. A clear breakout below 1.1103 will invalidate the anticipated upward rally and could push the price lower to 1.0865. Expect a similar wave count in GBPUSD, AUDUSD and NZDUSD. These pairs have a strong positive correlation of up to +85% and will move in the same direction during this intraday.

Trade Recommendations:

Expect a possible rebound from 1.1103 to buy this pair with the first target at 1.1398. A breakout below 1.1103 will call for short positions with an ideal target at 1.0865.