A break above the falling channel | 16 February 2017

Wave Analysis:

During the previous trading day, instead of going short as previously forecasted, the pair merely spiked to the lower side but ended up closing a bullish pin bar on the daily chart. This is a clear sign that bears are loosing momentum, thus, following the break above the falling wedge, we expect the current upward rally to be a possible corrective three wave cycle with the last impulsive wave (c) not going above 1.0698. In the meantime, we're waiting for minor pullbacks to the just broken resistive trend line to buy the last impulsive wave (c). Expect a similar wave count in GBPUSD, EURHKD and NZDUSD. These pairs have a strong positive correlation of up to +75% and will have a similar price action during this intraday.

Trade Recommendations:

Wait for minor retracements to the just broken trend-line to go long with an ideal target at 1.0698.