Daily cycle in the pair is very stretched and a decent pull back could start at any moment but there is no confirmation yet that daily cycle has ended so trading strategy in the shorter cycles is still to buy the dips in the sequence of 3, 7 and 11 swings. Pair has already done 3 waves down from “W” high followed by a connector in wave (( x)) and now it has scope to make another 3 wave push lower to do 7 swings. We expect the pair to end 7 swings in the region of 116.90 – 116.50. This is where we expect to see buyers appearing and rally should resume for new highs above 118.98 as per primary Elliott Wave count or a 3 wave reaction higher at minimum. As there is a green arrow on the chart and line going down is dotted, we don’t like selling the pair & view presented would remain valid as far as pivot at 113.82 (11.10) low remains intact in our proprietary pivot system.
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