A triangle pattern is being formed between 1.57 and 1.5560. The trading range is getting every day tighter and tighter. Soon we should see a break out. Breaking above 1.57 could push this pair towards 1.60 while a break below 1.5560 will push price towards the 1.54 support first and then towards 1.51 where the 61.8% Fibonacci retracement is found.
The Ichimoku cloud does not offer much help right now as the trend is neutral as price mainly moves sideways.
This pair has already made a pull back towards the 38% Fibonacci retracement and then a bounce back up towards its recent highs. Price is trading near its recent top at 124.50 and is above the Ichimoku cloud. Price has already once been rejected and pulled back towards cloud support. The upward move from 120.40 to 124.50 is impulsive. This upward impulsive move is complete. A three wave decline is to be expected. The big question now is if the entire correction ended at the 38% retracement at July 27th or only the first part of the correction ended there?
If the entire correction is over at the 27th of July then we should be bullish and buy if we break above the 124.50 level. If the correction is unfinished, we should be selling at current levels with stops at 124.50 and target a new low below 123. The most probable target will be the 122 level at the 61.8% Fibonacci retracement.
As always, thank you for taking the time to read my latest analysis.