We are long | 16 September 2016

Wave Analysis

Yesterday, the corrective wave (b) rebounded perfectly along the supportive trend line as previously forecasted. We expect the current upward rally to be the unfolding of the impulsive wave (c) but should not go beyond the resistance level 1.4111. A clear breakout above this target may push the price further to the upper side with an ultimate target at 1.4667. Although an upward rally is highly anticipated, we cannot rule out a possibility of retracing to the lower side and even breaking below the immediate supportive trend line. Expect a similar price action in AUD/USD, GBP/HKD and NZD/USD.

Trade Recommendations:

Remain long with an ideal target at 1.4111