Bears approaching 1.2029 | 23 December 2016

Wave Analysis:

As expected, the pair traded massively short during the previous trading day and is still showing signs of potential bears dominance. As long as the pivot level 1.2412 limits any invasion to the upper side, we expect a possible bearish wave count towards 1.2029. A break below this level will push the price further to the lower side with the next ideal target at 1.1139 or even lower. This view can only be invalidated in case of a breakout above 1.2412, if the latter is the case, then a a bullish acceleration towards 1.27252 is highly anticipated. This pair have a strong positive correlation with EURUSD, AUDUSD, and NZDUSD but a strong negative correlation to USDJPY, CADJPY and NZDJPY.

Trade Recommendations:

Remain short with the first target at 1.2029.