Decline in an upward momentum | 23 September 2016

Wave Analysis

As previously forecasted, the inner corrective wave 4 traded long but could not go above the upper resistive trend line, we are waiting for a clear rebound from this trend line to give us the green light to continue short with the inner impulsive wave 5 and the outer impulsive wave E. This view can only be invalidated in case the current corrective wave 4 end up breaking above the upper trend line, if the latter is the case, then we expect a possible acceleration to the upper side but should not go beyond 1.41114. Trade this pair alongside GBP/HKD and NZD/USD.

Trade Recommendations:

Expect a possible bearish price rally from the upper trend line towards the lower trend line.