Continuation higher; upside count 1.3910 | 23 October 2013

The near-term trend continues to rise higher and higher after yesterday's breakout to the upside on poor Non-Farm Payroll figures. The trend is our friend and so we should expect it to continue going up; there is resistance at 1.3860 so that would be the next target to the upside, followed by the count on the 25 pip P&F chart which is 1.4125. Currently price is pulling back and could reach 1.3740 but then I would expect it to resume going up. Taking the horizontal count from the width of the consolidation pattern gives an up-side target at 1.3910, which seems plausible, although a buy trigger would be required first, from any double-top, or from a break above the 1.3795 highs.