Preferred Elliott wave view is that pair is dropping in a corrective manner from 96.51 high. Initial drop to 94.96 was wave (( w )), recovery to 96.22 was wave (( x )) and pair is currently in wave (( y )). We have already seen waves (( a )) and (( b )) of (( y )) and wave (( c )) lower is in progress. This decline can reach as low as 94.32 – 94.68 where we expect buyers to appear and rally to resume.
We would expect to see new highs above 96.51 as per the primary view or at least a 3 wave reaction higher from the orange area as it’s a corrective drop and equal legs – 1.236 ext area should prove to be a strong one. Only a drop below 93.70 (1.618 ext) would be concerning for this outlook, until then bullish outlook remains valid.