Possible double top formation on the 4H chart | 10 January 2017

Wave Analysis:

Yesterday, instead of continuing short below 1.05405, the pair retraced to the upper side and is currently in a process of forming a double top around 1.060. We expect a possible rebound around this level to culminate into a bearish wave count towards 1.051 and possibly lower to 1.03896. Any break above 1.061 may invalidate the anticipated downward rally and could push the price towards 1.087 or even higher. Expect a similar wave count in NZDUSD, AUDUSD, GBPUSD and EURHKD. These pairs will have a similar price action during this intraday. Only buy or sell Euro if the other pairs are giving the same signal.

Trade Recommendations:

Wait for a clear rebound around 1.060 to go short with the first target at 1.05196. Alternatively, conservative traders should wait for a break below 1.051 to to go short with an ideal target at 1.03896. Buy positions are only recommended above 1.061.